USDJPY (Daily Chart Analysis)
A contraction in the volatility is visible in the uptrend - an ascending wedge pattern is forming - where prices are testing the upper resistance zone
The quantitative analysis
- 3 legs appear in the recent bull phase
- each leg constitutes a rise and then a relatively smaller fall
- the ratio of fall to rise for the first 2 legs is between 68%-70%
-
Now we are expecting a similar fall in USDJPY - that will make the ratio of fall to rise near 70%
For this, the prices might test the levels near 157.35
- this level also constitutes the fib ext level 0.786
- also the lower trendline of the ascending wedge
The technical and quantitative analyses both signal a fall in USDJPY
The fundamental factors include intervention of Japanese authorities into the forex market when prices rise substantially higher - these are such levels.
A contraction in the volatility is visible in the uptrend - an ascending wedge pattern is forming - where prices are testing the upper resistance zone
The quantitative analysis
- 3 legs appear in the recent bull phase
- each leg constitutes a rise and then a relatively smaller fall
- the ratio of fall to rise for the first 2 legs is between 68%-70%
-
Now we are expecting a similar fall in USDJPY - that will make the ratio of fall to rise near 70%
For this, the prices might test the levels near 157.35
- this level also constitutes the fib ext level 0.786
- also the lower trendline of the ascending wedge
The technical and quantitative analyses both signal a fall in USDJPY
The fundamental factors include intervention of Japanese authorities into the forex market when prices rise substantially higher - these are such levels.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.