USDJPY Signs of longterm reversal
Trying to make a longterm forecast for the USDJPY. There are few signs that we might should expect a reversal here, despite the bearish channel.
So beginning a top down analysis from the longterm charts to the shorterm we got :
Monthly chart
1) 50% Fib Retracement level reached but not violated.
2) 3 big monthly spikes in a row !!. Sign that this level is crucial
3) Stochastic index just crossed from the oversold (currency is falling since 06/2015)
Weekly chat
1) Double bottom with RSI bullish divergence
Daily chart
1) Triple Bottom tested 99.500-100.500 level, didn't violated it
2) Rsi bullish divergence again
We could see 2 major reversal zones which was both tested several times in the past. I believe though that now IS NOT A GOOD TIME TO GET LONG as we should expect a retracement around at 102.000 area (previous resistance in lower time frames) in order to get better risk to reward ratio. Daily candle is not good to get long from now as well
Target 1 : 106.500
Target 2: 110.950
Stop loss : 99.450
P.S. I could only tag daily chart so please check weekly and monthly with RSI set at 7 periods
So beginning a top down analysis from the longterm charts to the shorterm we got :
Monthly chart
1) 50% Fib Retracement level reached but not violated.
2) 3 big monthly spikes in a row !!. Sign that this level is crucial
3) Stochastic index just crossed from the oversold (currency is falling since 06/2015)
Weekly chat
1) Double bottom with RSI bullish divergence
Daily chart
1) Triple Bottom tested 99.500-100.500 level, didn't violated it
2) Rsi bullish divergence again
We could see 2 major reversal zones which was both tested several times in the past. I believe though that now IS NOT A GOOD TIME TO GET LONG as we should expect a retracement around at 102.000 area (previous resistance in lower time frames) in order to get better risk to reward ratio. Daily candle is not good to get long from now as well
Target 1 : 106.500
Target 2: 110.950
Stop loss : 99.450
P.S. I could only tag daily chart so please check weekly and monthly with RSI set at 7 periods
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