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18 Jun 2013
USDJPY, looking to rejoin the downtrend - 2ndSkies
FXstreet.com (Barcelona) - After the failed attempt to rally above the 95.10/15 resistance, the USD/JPY still looks tentatively bearish, with a break of 93.81 key support still required to open up further downside, says Chris Capre, Founder at 2ndSkies.
In view of Capre, following the aggressive 4-week of selling, "the pair has formed back to back inside bars or an ii pattern, which was all formed within a large tailed pin bar at the 93.81 support". Capre adds that Monday's inverted pin bar, from an order flow perspective, "translates into a failed attempt to rally."
The pair, still trapped within a short term range between 96.00 and 93.81, needs to see the latter taken out in order to qualify for its next downside target at 92.45, Capre believes. On the contrary, a break above 96.00 suggests 97.00 might be challenged, Capre thinks.
Overall, Capre favors the downside, "looking to rejoin the downtrend on a breakdown of the inside bars, or a pullback towards resistance" the trader said.
In view of Capre, following the aggressive 4-week of selling, "the pair has formed back to back inside bars or an ii pattern, which was all formed within a large tailed pin bar at the 93.81 support". Capre adds that Monday's inverted pin bar, from an order flow perspective, "translates into a failed attempt to rally."
The pair, still trapped within a short term range between 96.00 and 93.81, needs to see the latter taken out in order to qualify for its next downside target at 92.45, Capre believes. On the contrary, a break above 96.00 suggests 97.00 might be challenged, Capre thinks.
Overall, Capre favors the downside, "looking to rejoin the downtrend on a breakdown of the inside bars, or a pullback towards resistance" the trader said.