USD/JPY Recovery After V Shaped Reversal Pattern
|Despite strong Core Machinery Orders in Japan today, signaling strength in their manufacturing sector; UJ continues to move bullish after this weekend's gap up, and this is largely as a result of risk-on sentiments across the risky assets such as Equities. The retracement has started after a V shaped reversal pattern and the intraday/week trend turned to bullish.
Technically, the USD/JPY is still in downtrend but it has a strong recovery, and the gap hasn't been closed yet. 109.25-109.40 is the POC(b) buy zone (order block, W H4, ATR pivot) and 110.45-110.65 is POC(s) sell zone. At this point price is in no man's land. If the price retraces to POC(b) we could see a bounce towards 110.13 and 110.50. If we see the price within the POC(s) then targets are 110.15 and 109.75. Above 110.75 we could see a stronger recovery. Watch for these zones.
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