Levels to lean against, bears in control for now
- Usdjpy closed inside the weekly cloud for the first time since September, top lies around 111.30, first resistance.
- Trendline break lies at 112.92, Fibo 23.6% of the Sep-Nov move is at 112.99
- The 38.2% fib of the Sept-Nov climb lies at 111.90, 100 AND 200 DMA’s at 110.74/76
- Top of the Daily Cloud is currently @ 111.50
- 50% Fibo of the move up is at 111.03
- Bottom of the Daily Cloud is to be found at 110.40 for a few days, 61.8 fibo at 110.15
I don’t have any open position for now, but the picture looks pretty bearish I must say. I will wait for the first hours of trading this week to give me a clue whether we hold that 111.30 resistance or not.
If we trade back above, ranges will prevail and I’ll be tempted to buy it with a stop under the line, looking for a return to 113.
A confirmation under the fibs and DMA’s should be an additional bearish signal in turn, which should see the market and myself try for the 110 area, where I will turn buyer as I expect Japanese investors to waiting on the bid down there as per previous posts one their investment intentions. Links to be found here , there and some more .