USD/JPY Losing Momentum

USD/JPY Losing Momentum

31 May 2016, 15:17
Roberto Jacobs
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USD/JPY Losing Momentum

USD is losing momentum due to end of month profit taking, NFP on Friday so positions may be squared. Additionally,equities are a resistance and that is important for JPY pairs, namely USD/JPY which correlates to NIKKEI, DAX and SP500.

Based on historical sellers and now moment price action taking counter trend opportunities within POC zone should provide better risk to reward then going long at resistance. Technically a strong bearish pin at POC zone ( 88.6, H5, bearish divergence, historical sellers ) suggest a possible drop towards 110.60 and possibly 109.85 which is a strong support zone ( X cross, L3, WPP, inner trend line ). Ideally the price should stay capped below 111.90 for sellers to dominate.


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