USDJPY Long Opportunity Into Diagonal Support Area(s)!
USDJPY is currently correcting lower in a larger symmetrical triangle pattern.
There could be two scenarios that play out this week in this market.
Scenario (1) is that the USDJPY finds support at the medium term diagonal support area C around the 1.12 handle.
Scenario (2) is that the USDJPY finds support at the longer term diagonal support area E around the 1.10 handle.
The current uptrend is valid up until the pair violates the longer term diagonal support area E on the chart.
We could see a momentum move and next impulse leg higher into the 1.1450 area with a break above close above this level signalling a strong breakout signal higher into the horizontal support area around the 115.50 area on our way to the118.50 level in coming weeks.
There could be two scenarios that play out this week in this market.
Scenario (1) is that the USDJPY finds support at the medium term diagonal support area C around the 1.12 handle.
Scenario (2) is that the USDJPY finds support at the longer term diagonal support area E around the 1.10 handle.
The current uptrend is valid up until the pair violates the longer term diagonal support area E on the chart.
We could see a momentum move and next impulse leg higher into the 1.1450 area with a break above close above this level signalling a strong breakout signal higher into the horizontal support area around the 115.50 area on our way to the118.50 level in coming weeks.