- Month chart shows previous resistance around 1400 levels.
- Price also reaching month cloud which may act as resistance.
July 29, 2016
- USDJPY Daily resistance line and cloud acted as resistance for the pair. News event did not take the pair above its daily cloud.
- Now crucial support for the pair is at 100 as discussed in yesterday's post. the 50% Fib level in month chart is at 100. Further weakness for the pair only if price starts to trade below this level.
- One hour continues to trend in favour of crude oil bears. All consolidations are resulting in new lows for this time frame.
- Daily chart is near 200 SMA. For now 200 SMA is around 40.40 levels approx.
- Weekly chart shows the possible formation of an Inverted Head and Shoulders pattern. Current fall if limited to the 200 SMA or around it there could be a reversal to form the right shoulder of the pattern. But if price starts to close below 38 levels this possibility will start to faint.
- USDJPY Chart Analysis