USDJPY November 30th 2018 price action analysis
On Thursday, the dollar weakened against the Japanese yen and ended the day with a decrease of 17 percent. However, the USDJPY plummeted around 113.21 and could offset some of the initial downside. The AB = CD pattern is completed at the top of support of 112.67. This level is also consistent with the estimate of 161.8% Fibonacci. If the pattern AB = CD is completed, the stop loss orders will be active below the Rand rate of 113 and the 4-hour grabbing line drawn from the bottom of the 111.37.
The four-hour support of 112.67 is the best place for the USDJPY bullish return, and in addition to being well adapted, it is consistent with the 112 weekly support of 65 (the reopening of 2018). However, if USDJPY returns from current levels upward, Rand 114 will be the next target. The Rand 114 rate is at the bottom of the weekly supply range of 115.50-113.85.
Price action strategy
Regarding the above, the four-hour support at 112.67 is appropriate for entering the USDJPY purchase deal versus the 114 rate for entering USDJPY. It is recommended that you wait for the sale signal before entering into the USDJPY purchase or sale transaction.
On the daily chart, the bullish bull of the USDJPY, which started at around 104.64 on the 23rd of March, after six months from the resistance range of 114.050-114.00 per day and the ceiling of the mid-term bullish channel stopped Is. Recently, the currency pair is between the resistance range and the bottom of the channel. In the previous report, it was pointed out that the rebound of the currency pair to the resistance range indicated that the mid-range 113,50 was in the form of support, resulting in an equalization rate of 114,000. On Wednesday, the USDJPY faced sales pressures again in response to resistance, falling again to 113.35.
In today’s trading, the US dollar is pegged to the Japanese yen for the fourth consecutive day at an average of 113.55. If 113,50 would prevent new bearish movements from starting, USDJPY could return to the resistance range of 114-50-114. 00. In order for the recent market rally to continue in the form of an uptrend channel, the resistance range must definitely be broken.
In contrast, if the average rate of 113.50 is to be resisted, the pair could continue to retreat from the resistance range to the RED rate of 113.00, 112.65 and the channel floor. It should be noted that the bottom of the channel is consistent with key support, which means that if USDJPY falls, the vendors will face serious barriers and the downside is likely to be limited.