A successful test of the lower border of the 1.2730-1.2920 consolidation range with the following renewal of May high opens the way up to 127.2% target of AB=CD.
USD/JPY: bears are preparing a counterattack
TP1 107.95 TP2 107.35 TP3 107.15
On the daily chart of USD/JPY, there are high risks of the reversal of the short-term upward movement as the pair reached the 88.6% target of the “AB=CD” pattern and the doji bar was implemented in the 109.63-109.93 convergence. To continue the rally, bulls need to break the May high.
On H1, the “Spike and reversal with acceleration” pattern is continuing to implement. Breaks of supports at 109.50 and 108.95 will increase risks of the decline to the 88.6% target of the “Shark” pattern.
Recommendation: SELL 1311 SL 1326 TP1 1281 TP2 1272 TP3 1250 SELL 1280 SL 1295 TP1 1250 TP2 1244 On the daily chart of USD/XAU, bulls have to break resistance at 1302…
Bullish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the prices are reached the main daily resistance on 111.50 and the market is overbought now.
Narrow bearish Ichimoku Cloud, horizontal Senkou Span A and B; a new weak golden cross of Tenkan-sen and Kijun-sen; the prices are three way bounced from the SSB’s resistance.
Today’s news headline is that Trump officially announced the withdrawal of the US from the Paris climate agreement…
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