the daily chartist

The Yen is again under pressure

published 6 months ago

For the pair, I am still observing an uptrend still in play as the price has returned inside of it after the test on the downtrend line on the 26 October. It was a pure stop hunting and the fake breakout is obvious. The price since then made a strong impulse towards the 50 SMA and closed above it. With breaching 78.6 Fibo on the next day the price made a confirmation for long positions. DeMarker also turned North above the 0.3 line showing that the pair was oversold. The price movement also has formed a double bottom which is currently in play. Unfortunately, on Friday the price did not close above the previous day's high so I think that the price may return a couple of pips down towards the 78.6 Fibo at least before continuing the move up as the dollar gains strength. 

First scenario: you can open long positions with the trend with a stop loss 110.500.

Second scenario: you can wait for the correction down towards a more cheaper level to get in.

Third scenario: The price manages to break through the 78.6 Fibo, the 50 SMA and the downtrend line for a move towards 200 SMA.