The JPY Basket has made a 3.3% move without any significant pullback, which suggests a strong momentum, but this move lacks the typical retracement I’d expect to see for a more balanced market. It has reacted off a key level that I’ve identified as an area of interest. However, to gain a higher level of confidence in the direction, I’m waiting for a "double tap" — a second test of this area — which would signal that the market is likely to move lower.
The confluences supporting this bearish view are strong. First, the trend line is indicating a potential reversal point, aligning with a daily rejection zone, where price has shown resistance previously. Additionally, we have the -0.618 Fibonacci extension level on the daily chart, which often acts as a target for price retracements or continuations. Given these factors, I’m expecting the market to pull back to at least the 6664 level before potentially moving lower.
The confluences supporting this bearish view are strong. First, the trend line is indicating a potential reversal point, aligning with a daily rejection zone, where price has shown resistance previously. Additionally, we have the -0.618 Fibonacci extension level on the daily chart, which often acts as a target for price retracements or continuations. Given these factors, I’m expecting the market to pull back to at least the 6664 level before potentially moving lower.
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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.