www.varchev.com

Forex: USD/JPY with Breakthrough of “Head and shoulders” formation

USD/JPY

Time frame: H4

Technical Analysis: The chart shows that the USD/JPY currency pair has formed a “Head and Shoulder” formation. On 18.07.19, after Fed John Williams  comments, she managed to break the neckline of the head with which she activated the formation. The USD/JPY is currently testing the breakthrough again, with a 4-hour chart showing a “dodji” candle. This candle signals that the breakthrough is steady and it is possible for the pair to continue in a downward direction.

Indicators: At this stage, all moving averages play a role of resistance.

RSI is above its over-sold values, which allows the price to continue in a downward direction.

DeM is in its over-sold values, which does not support the “sell” scenario.

Alternative Scenario: If the price can break the neckline back and hold over it, the formation will be broken and a new price appreciation may be seen.


 Trader Milko Zashev


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance