Free Trial

Bullish Engulfing Reversal Still In Play

USDJPY TECHS
  • RES 4: 116.09 1.764 proj of Apr 23 - Jul 2 - Aug 4 price swing
  • RES 3: 115.52 High Nov 24 and the bull trigger
  • RES 2: 114.38 61.8% of the Nov 24 - 30 downleg
  • RES 1: 113.95/96 High Nov 29 / Dec 8
  • PRICE: 113.84 @ 16:20 GMT Dec 8
  • SUP 1: 112.53 Low Nov 30 and the bear trigger
  • SUP 2: 112.08 High Sep 30 and a recent breakout level
  • SUP 3: 111.32 61.8% retracement of the Aug - Nov rally
  • SUP 4: 110.82 Low Oct 4

USDJPY started the week on a firm note and is holding onto this week’s gains. Monday’s price action appears to be a bullish engulfing reversal. If correct, it suggests the pair has found a base at the recent low of 112.53 on Nov 30. The 20-day EMA at 113.70 is being tested. A clear break would reinforce the pattern and suggest scope for a climb towards the November high of 115.52. Sub 112.53 levels would instead reinstate a bearish threat.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.