Trade view /
11 August 2016 at 7:13 GMT
Stocks open higher this morning and it looks like USDJPY could make a recovery to the upside. A break of the intraday formation is needed to confirm the view. This is what we are seeing:
Monthly: Posted inside bars close to solid support at 100.00. This is not only a Big Figure but also a possible right shoulder in a large bullish reverse Head and Shoulders pattern.
Weekly: Completed a bearish Elliott wave five count. We are now holding close to the 261.8% extension level at 100.44. Doji candle last week highlights indecision. This week is yet to close. Elliott wave dictates that we should at least see a correction to the upside now.
Daily: Highlights a channel formation. Inside this pattern, the trend of higher lows has held overnight. There is nothing that clearly shows a change of trend yet.
Intraday (15 minutes): It is not until we drill down into the 15-minute timeframe that we see a possible reversal formation in the way of a double-headed reverse bullish Head and Shoulders pattern. It should also be noted that DeMark has posted a 12 count on the hourly chart. A 13 count highlights exhaustion so buying close to 101.16 could offer a great risk/reward trade. We prefer to but the break at 101.50. The measured move target would be 102.05.
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Source: Saxo Bank
Entry: buying a break of 101.50.
Target: 102.05 (intraday), 111.40 (medium-term).
— Edited by Michael McKenna
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