With 50pips against us since my last publication (see link below for reference purposes); It now appears that the Breakdown of 105.700 was nothing but a false one! As the pair recovers from the dual blow of Shinzo Abe’s resignation and Federal Reserve’s dovish policy shift; The US dollar rallied during the course of last week to slam into my Key level @ ¥106.50 level – a sensitive level to look out for in the following week as price action around this level will be dependent on PM Abe’s replacement and US inflation figures. Tendency: Uptrend ( Bullish ) Structure: Trendline | Breakout| Support & Resistance | Supply & Demand Observation: i. 106.500 has been a significant level for me since Breakdown in July 2020 as we continue to see the rejection of this zone despite Breakouts on two occasions in August 2020.
ii. We are at this level again after the close of market last week with a possible Breakout looming at the corner. iii . Previous Breakout/Rejection of my Key level is a signal that Buyers are insisting on breaking this level as participants make Higher Lows off of Bullish Trendline .
iv. Breakout/Retest of Key is a signal to watch out for in the coming week(s).
iv. It is pertinent that I state here how important the Demand zone is at this juncture as we might have a correction into this level before the incitation of rally. However, a significant Breakdown of Demand zone might render this setup invalid. Trading plan: BUY confirmation with a minimum potential profit of 200 pips. Risk/Reward: 1:4 Potential Duration: 2 to 5 days NB: This speculation can be considered to make decisions on lower timeframes. Watch this space for updates as price action is been monitored. NirvanaForex
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.