USD/JPY Topping Action
- Daily and 4H: I mentioned in the previous video post that the USD/JPY was showing some signs of weakness with a rejection from rallying above 91.00. There a deceleration of the market as we saw in the 4H time-frame, a converging triangle, which the market looked to break in the previous session. (Refer to Daily Video Technical Update; 3rd pair).
- The daily as shown in the video shows 2 differet degrees of swing projection, both eyeing the 87.00 area. As we see in the 4H, it is just above it, near 87.10.
- The 4H time-frame also shows possible supports in the bearish scenario. The 50% area is a test of bearish strength. The 100% does not have that much implication, and the 87.00 the upper boundary of a major support zone.
- 1H: The 1H time-frame shows details of the action throughout the Asian-European regional sessions, which is the start of the current global session.
- The market stalled at the 90.40 area ahead of the Asian session, but dipped as it gone underway.
- However, the start of the European session brought support, but not before a clearout of the 90.15 support, but was held at the 90.00 psychological support and the SMA200.
- A sharp upswing to start the European session is stalled just ahead of the US session, and when the US session got underway, the pair declined, held below 90.70.
- The high of the previous daily session was at 90.85, a note of bearish direction, despite a surge in momentum seen in the stochastic.
- The market is bearish in the long-term and has been only bullish in the short-term, but is now turning bearish as well in the short-term.
- This suggests an intermediate-term bearish attempt is getting underway. Look for a break below 90.00 as a confirmation for the outlook stated above in the 4H chart analysis.
