USDJPY Forecast and Trade Setup for the week 12th May, 2014

USDJPY Forecast and Trade Setup for the week 12th May, 2014

Daily Chart

• On the Daily Chart we have seen continued support at around the 101 area where market rejected.
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Hourly Chart

• Price action gives us bullish signals
• has shown that we have come out from the descending channel
• rejection from 101.xx support
• Possible false break from the ascending trendline (long term and the medium term trend line)
• As we are trading near the bearish Clouds, It would be interesting to see what the market will react. however given the fact that Dollar Index is strong and as reflected on this USDJPY pair, it would be not surprising if we were to test the monthly pivot in the near term
• Further along, I could see a potential towards the upside to test the 103 zone where a possible bearish bat pattern

Outlook Trade opportunity

Long - near term, up towards the monthly pivot perhaps
If monthly pivot breaks - i see it test the 103.xx before a possible short at at harmonic pattern.

Risk Level - LOW

Tips -

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