Usd/Jpy Forecast: Traders Await Potential Correction
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read full review get started During Tuesday's trading session, the US dollar experienced a minor retreat, potentially influenced by reduced liquidity due to Independence Day celebrations. The market has shown signs of being overstretched, leading to expectations of an imminent correction. This correction could present a valuable opportunity for traders, particularly around the ¥142.50 level, which previously acted as resistance. Traders may find that the usd/jpy exchange rate exhibits a level of "market memory" in that region, encouraging renewed interest.Market Remains Bullish Notably, a bullish flag formation can be observed beneath the market, indicating the potential for an upward move towards the ¥148 level. Additionally, an ascending triangle pattern suggests further bullish pressure, with a target closer to the ¥149 level. Although a positive trajectory is anticipated, concerns regarding potential intervention by the Bank of Japan have emerged. While the market displays strong long-term bullish pressure, it has become overextended. Consequently, it is advisable to await a pullback that offers better value, as the market has moved ahead of itself. With the current market dynamics, it is prudent to exercise caution and seek attractive buying opportunities following a significant pullback. By waiting for days characterized by pronounced downward movement, traders can position themselves to capitalize on favorable forex entry points . Given the Bank of Japan's loose monetary policy and the Federal Reserve's relatively tighter approach, a one-way trade scenario is anticipated.
The 50-Day exponential moving average currently aligns with the upper boundary of the bullish flag formation, indicating that the flag itself may serve as a support level. Consequently, traders should closely monitor these levels for potential buying opportunities. In conclusion, the US dollar experienced a modest retreat during Tuesday's trading session, likely influenced by reduced liquidity due to Independence Day celebrations. The market's overextended nature suggests an imminent correction, which could provide value-based opportunities for traders. The ¥142.50 level, serving as a previous resistance area, is expected to attract renewed interest. Bullish indicators, including a flag formation and an ascending triangle pattern, suggest further upward potential. However, concerns regarding potential intervention by the Bank of Japan have emerged. Accordingly, it is advisable to await a significant pullback to secure a favorable entry point. With the Bank of Japan maintaining loose monetary policies and the Federal Reserve adopting a comparatively tighter stance, the market is primed for a one-way trade. Traders are encouraged to monitor support levels , including the 50-Day EMA and the bullish flag, for potential market support. Ready to trade our daily forex analysis ? We've made a list of the best online forex trading platform worth trading with.
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