USDJPY Weekly Chart : Inside Bar Pattern , Large bearish Reversal Could be In Sight !

As shown on the weekly chart below , the USDJPY has formed an inside bar pattern last week , It’s a bearish reversal pattern , but sometimes it turns to bullish If the market  breaks at the opposite direction  !!!

Resistance comes at the 118.97 levels while support comes at the 115.44 levels , stability below the 118.97 levels on a weekly closing basis could mean a return to the 115.44 levels , If 115.44 fails on a weekly closing basis , next support would be 112.00 levels , but in return , break of 118.97 on a weekly closing basis will target (118.98+353 = 121.50 ) levels , further upside will aim the (121.50 + 353 = 124.03 ) levels.

Notes :

353 pips is the length of the outside bar !!!

Minor support comes at the 117.22 levels below this level will open 115.44 levels .

Any way , Today I’ve noticed something strange , If you read my previous – weekly forecasts – for the USDJPY the past few weeks  , I guess you have noticed my resistance levels at the 121.50 levels and 124.12 levels , those levels are confirmed by weekly %R(Williams) But I’ve noticed something strange today , If USDJPY breaks above 118.97 , weekly targets of the Inside Bar Pattern are the same as weekly targets of R%(Williams) indicator at 121.50 and 124.00 levels.

Note that according to weekly %R , stability above the 118.00 levels on a weekly closing basis will open 121.50 next , further upside will aim the 124.13 levels , last week the pair closed above 118.00 levels , but we need another close above 118.00 levels to avoid false break out !!!

Finally , If you take a look at the daily chart below , the weekly resistance 118.97 has been rejected with bearish divergence , neckline comes at the 117.22 levels , below this level will build strong pressure on the 115.44 even may break lower !!!

Conclusion : we have 3 options:

1- stability above the 117.22 will build pressure on the 118.97 levels , a clear break above this level will open 121.50 next.

2- A failure to hold gains above the 118.97 levels could mean a return to the 115.44 levels , as a result ; the USDJPY may consolidate within 115.44/118.97 levels for several weeks ..

3- Losing the 115.44 levels will turn outlook bearish and open 112.00 levels  ahead of the 107.55 levels.

What’s next destination ?!!…..I think Nonfarm payroll  – next Friday – will give the pair the needed fuel to go up or downs !!!

 

USDJPY Weekly Chart _ Inside Bar Pattern , Large bearish reversal In Sight

 

USDJPY Weekly Chart _ Inside Bar Pattern , Large bearish reversal In Sight_002

MARKET DATA

UPCOMING ECONOMIC EVENTS

3 COMMENTS

  1. I had been excited to uncover this page. I have to to thanks a lot for ones time for
    this particularly fantastic read!! I definitely really liked every component of it and i
    also do you have saved to fav to consider new stuff in your web site.

  2. Great work! That may be the type of information that are made to
    be shared across the net. Disgrace on the search
    engines for not positioning this submit higher!
    Come on over and talk to my website . Thanks =)

Comments are closed.