Picture perfect uptrend in USDJPY, with price making higher highs and higher lows in the daily chart, there is no question that we are bullish in this particular market.
Price dropped in a sharp move starting from the 113.700 level taking out previous support 111.600. It’s not clear on how price is going to behave in the following days. What we want to see is price climbing once again above the broken support. In such case we will consider the breakout below the 113.700 as a stop run from the big whales and we will only watch to join them to the upside.
Another factor that we may consider in order to go long in USDJPY, is that price was rejected for good at the 0.707 and 0.786 fib retracements of the previous impulse.
Price dropped in a sharp move starting from the 113.700 level taking out previous support 111.600. It’s not clear on how price is going to behave in the following days. What we want to see is price climbing once again above the broken support. In such case we will consider the breakout below the 113.700 as a stop run from the big whales and we will only watch to join them to the upside.
Another factor that we may consider in order to go long in USDJPY, is that price was rejected for good at the 0.707 and 0.786 fib retracements of the previous impulse.
