USDJPY – Evening Doji Star posted at the high

Ian Coleman FXStreet

Technical

Monthly: Holding within a corrective channel formation. A break of support at 106.70 opens the way for a more aggressive corrective AB=CD formation. The measured move target is 92.00. This is just below the 61.8% pullback level of 94.77 (from 75.56-125.86).

Weekly: Broken out of the channel formation to the upside. Reverse trend line support is located at 110.40. We have posted an Evening Doji Star pattern. This often indicates the top of a trend.

Daily: Stalls close to bespoke support of 111.76. There is ample scope for an upside correction from current levels. Last week’s Marabuzo level is located at 112.98. Bespoke resistance is located at 112.66. Selling into rallies offer decent risk/reward. It should be noted that the projected 261.8% extension of 106.87 (from 111.54-111.6) is located close to the aforementioned monthly trend line support.

Action: We look to Sell at 112.65

Stop: 113.65

Target: 110.70 and 107.00

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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