Japanese Yen 6J – USDJPY Long Term – Monthly for CME:6J1! by Maximilianned

This is a very interesting chart.

Normally I don’t look at monthly charts – but this one is special.

Lots of lines on the chart – but take a moment and I’ll go through it with you.

Firstly I realize that most people trade currencies do so with CFDs – which is fine but the banks/funds that push the market around look at Futures Market.

The red dotted line is a broken trendline ( I will add these trendlines are drawn by an algo – its what the algos see and interact with – if interested DM and tell you how to get them.

Back in July we were positively divergent on RSI as (green dotted line) we were at the bottom of a known support level and the market was trying to go up.

This was broken – with everybody long they jammed it down. Ouch – Its what they do.

This created a new triangle – much larger, but currently untested – bottom blue dotted line.

In the middle of that is an orange angle bisector (part of the algo) – and its exactly where prices stopped – exactly creating a 2.0 Fib Retracement. Sounds like something a computer program would do right?

This reaction is an acknowledgement that we are now working with these larger trendlines -this means that eventually the Yen will be going down a lot more. However this could be months or even years away.

This happened this week. Could we put in a double bottom? maybe but I wouldn’t count on it.

So now what? Well we hit a Naked Point of Control from last week today. We have back backed off a little – there are numerous untouched Naked Points of Control above and maybe we’ll return to them – of course its hard to know.

The median price for the year and Naked Point of Control (confluence) is at 0.08970 – I would think we make it back to that – and really a rejection there would make sense.

Good luck


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