Price closed above the low of 28.11.2016 last Friday, almost exactly one year ago. This level is also at the 38.2% Fibo retracement level,
adding more significance to that level.
Further on, price was at overbought levels on the RSI and Stochastic indicators last year at this same level two weeks prior
to the USD interest rate decision; this time around two weeks prior to the 2017 USD interest rate decision, price is heavily
oversold as are the RSI and Stochastic's which would enable a bullish year end rally, extending beyond the high of
2016-17 at the beginning of next year.
I predict - as illustrated - that a bullish head and shoulders pattern will be formed, as long as price does not close below 111.357.
This is a very raw sketch, but I feel that the USD/JPY pair will be bullish throughout 2019.
Happy trading
adding more significance to that level.
Further on, price was at overbought levels on the RSI and Stochastic indicators last year at this same level two weeks prior
to the USD interest rate decision; this time around two weeks prior to the 2017 USD interest rate decision, price is heavily
oversold as are the RSI and Stochastic's which would enable a bullish year end rally, extending beyond the high of
2016-17 at the beginning of next year.
I predict - as illustrated - that a bullish head and shoulders pattern will be formed, as long as price does not close below 111.357.
This is a very raw sketch, but I feel that the USD/JPY pair will be bullish throughout 2019.
Happy trading