USD/JPY update.
Eventually, I am back, been away for just under a month so haven't really had the time to produce any updates on the markets I have been watching. I thought I would do a quick update on my opinion on the USD/JPY market and where I believe the direction could be.
At the moment it seems for August we have seen some consolidation within the market, holding within what seems to be a tight boundary in the 110 region.
As of now looking at the Bollinger Band positioning it looks as though we might bounce off the resistance level around the 110.272, but as always this is just a guesstimate based on where resistance seems to have been holding for the last few weeks.
But further to this point, the BB does show the candles touching the bottom of the BB area with a negative candle still in play, thus making it look as though we will have at least another downward movement ( probably small) before any further upward gains. The RSI shows neither top or bottom regions touched and thus a downward trend does look in play which is why the potential for another slight downward move towards the 1st resistance region looks realistic.
Yet if this is broken it may be a quick fall before any further resistance is found, just looking at the chart, the 109.00 region is where I believe could be the next level of a potential hold for the currency pair.
Buy volume spiked excessive recently and thus this may be where we are seeing further strong entries clearly mixed at different regions to avoid any substantial price hike. This might highlight the potential of squeeze in the Bollinger showing soon there will be a big upward bounce.
Interesting to see what position the market will hold and whether this is the position before another strong leg-up or just a peak before the storm down.
Peace.
The Naive Trader.
TradingView.com, 2018.
At the moment it seems for August we have seen some consolidation within the market, holding within what seems to be a tight boundary in the 110 region.
As of now looking at the Bollinger Band positioning it looks as though we might bounce off the resistance level around the 110.272, but as always this is just a guesstimate based on where resistance seems to have been holding for the last few weeks.
But further to this point, the BB does show the candles touching the bottom of the BB area with a negative candle still in play, thus making it look as though we will have at least another downward movement ( probably small) before any further upward gains. The RSI shows neither top or bottom regions touched and thus a downward trend does look in play which is why the potential for another slight downward move towards the 1st resistance region looks realistic.
Yet if this is broken it may be a quick fall before any further resistance is found, just looking at the chart, the 109.00 region is where I believe could be the next level of a potential hold for the currency pair.
Buy volume spiked excessive recently and thus this may be where we are seeing further strong entries clearly mixed at different regions to avoid any substantial price hike. This might highlight the potential of squeeze in the Bollinger showing soon there will be a big upward bounce.
Interesting to see what position the market will hold and whether this is the position before another strong leg-up or just a peak before the storm down.
Peace.
The Naive Trader.
TradingView.com, 2018.
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