The USDJPY has surged after NFP and Unemployment results on Friday and currently it is in a range/uptrend. The lack of any bullish zig zag has been compensated with an Inverted Roof pattern which suggests a trend continuation. Price began to climb after point A and it has been retracing till potential point B which makes a confluence at POC zone (61.8, L3, historical buyers). There is a possibility that inverted roof turns into a complex inverted Head and Shoulders pattern where point B will be the bottom of the right shoulder. The zone is 122.60-70 and we possibly could see an upward rejection from the zone. The first target is 123.10 followed by 123.40 rooftop overshoot/H3. Close above H3 opens the door for 124.00 final target before a potential breakout.
A drop below 122.28 will negate this scenario.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.