Yen Bouncing Off the Resistance

28 November 2016, 16:20
Leonardo Barata
0
12

Dynamic trend: Turned up

Background: W1 – weak; D1 – strong

Phase: Markup

Support: 111.80; 111.00

Resistance: 113.60

USD JPY 28-11-2016 

Analysis

Point 1: There was a breakout of the resistance level with a wide range and a high volume bar. The following up-bar confirmed demand. Moreover, on a smaller TF we can observe a successful test after this breakout, which confirms the strength.

Point 2: We can see a "Potential stopping volume" with an average range and a high volume. Because the subsequent bar was a down-bar, this maneuver is not confirmed, however, we should take into account that the strength comes on down-bars, and in the case of a successful test levels around 111.80 and 111.00, we will be going long.

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