USDJPY – Upside looking exhausted

by Admin

USDJPY – Upside looking exhausted; Looking to Sell at 100.00 or Buy at 99.08

USDJPY – The sequence of 6 higher daily lows and highs remains intact as USDJPY trades towards 100.00. If we look at the intraday chart the trend of higher highs is nearly pip perfect to this important level. This has formed an ‘Ending Wedge’ formation that is back up by bearish divergence (the chart makes a higher high while the oscillator makes a lower high), often a signal of exhausted bullish momentum, or at least a correction. There has been some selling overnight but the immediate bias is for higher levels. A minor AB=CD formation would take the pair to 99.08 where our 2nd support is located. We look to buy into profit taking losses. With these facts in mind our call today is Mixed Signals – Looking to Sell at 100.00 or Buy at 99.08 (30 pip stop).

Support levels are: 99.08, 98.84 and 98.59

Resistance levels are: 99.87, 100.00 and 100.72