Chart of the day: USD/JPY
|The USD/JPY has bounced from very clear support, where the pair was developing a head and shoulder pattern. Clearly, we had a bounce from the neckline which leads us to the next question: Where to now?
We could argue that the channel (blue) trend line held which just reinforces the strength of the 140.00 level support. However, after a 300+ pip bounce this week already, we are closing in on key resistance. This is located at the underside of the broken triangle trend line at 144.50 (red) which could be tested in the next 24hrs.
Sometimes, just using simple pattern recognition and drawing some trend lines can give traders a much cleaner picture and expectations.
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