USD/JPY is trading in the red at 111.08 at the moment of writing. It has slipped lower only because the DXY and JP225 dropped a little. The currency pair signaled that the corrective phase could be over, so we could search for new long opportunities.
Later, the US ISM Services PMI is expected to drop from 61.7 points to 59.9 points. In addition, the Trade Balance and the Final Services PMI will be released as well. Better than expected US data could boost the USD and could push USD/JPY higher.
USD/JPY Technical Analysis!
USD/JPY has found support on the 150% Fibonacci line of a major descending pitchfork, right below the 38.2% retracement level and now it tries to come back higher. Now, it has found temporary resistance at the weekly pivot point (111.22).
Stabilizing above the descending pitchfork’s median line and making a new higher high could signal strong growth ahead. Still, I believe that only a valid upside breakout from the pitchfork’s body could really activate an important growth, leg higher.
Conclusion!
Failing to stabilize under the 150% Fibonacci line and below the 38.2% retracement level signaled that USD/JPY ended its correction.
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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