This is another Monday! Japan, US and Canada will be on holiday. Thus we really have European market to play.
USDJPY stays within a narrow range. However, this situation doesn’t last forever. And when the price breaks the range, we can expect a big trading opportunity.
Thus, it is not a waste to review (once again!) where we stand with this pair.
Below is Weekly Ichimoku chart.
What we can read from this chart is…
a) The candle will hit the cloud within 4-5 weeks, and we can expect the candle will push the price up !?
b) Even if (for some reason) the price drops, the bottom will be 119.40 (current top of the cloud). So I wouldn’t hesitate to buy this pair from 119.40.
Now, here is the daily chart. Still the candles are blocked by the “thin” cloud. In order to become Bull, we need to see the candle breaking this cloud, thus above 120.70 and stay above it.
Below is regular daily chart. You can see 120.70 has been clearly the resistance.
Let us just prepare for the day when USDJPY breaks 120.70 line. I just hope that will be Oct 30-31, OBJ Monetary Policy Meeting.
YJ Baik – Forex.Today @ Tokyo