Forex technical analysis: USDJPY tests intraday target

16 June 2016, 16:37
Sherif Hasan
0
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When you go 258 pips, there may be some profit taking.

The USDJPY has moved about 258 pips from the highs and reached this low in the process.(see chart below)

There was a healthy correction that saw the price test the earlier low at 104.50 and the 38.2% retracement of the move down at 104.527.  The fall from that retracement area has taken the price down to the 103.79 area. This roughly is the area that defined the bottom earlier in the day (see red area at the low for the day). When the price moved back above this red area, earlier in the day and corrected lower, the price bottomed there.   That is a target to get through now.

The trend is impressive. The sellers remain in controll. The 38.2 correction was healthy and it stalled at the right spot.  But trades have times when they need to reprove themselves. We take those clues from what we see. Getting below the 103.79 is a reprove area. Get below, is a further step in the trending direction.  Holding and a move back above the 100 bar MA above and the waters get more muddy for the trend at least.

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