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USD/JPY On Verge Of Major Bullish Reversal

USD/JPY On Verge Of Major Bullish Reversal

I have been bearish USD/JPY for a long time but recently and especially on Monday, I changed to neutral and look for bullish confirmation signals of a possible reversal that could at first take us back up to 106. USD/JPY has broken the long-term downward sloping trend line resistance and is testing Ichimoku cloud resistance in the daily time frame. A break out above 103.25 will be a bullish confirmation of a reversal. At the same time bulls should hold support above 101.60-101.30 area. As long as price is above that level, I remain cautiously bullish.

USD/JPY: Daily

Moreover, we should also not ignore the triple bottom formation around 100. If this pattern is combined with a breakout above the Kumo (cloud) resistance we have a potential target of 106 at least.

USD/JPY: Weekly

On a weekly basis, we have bullish pergence signals. A confirmed break out of the bearish channel could at first push price towards the weekly Kijun-sen (yellow line indicator) and next towards the weekly cloud resistance at 110-112.

Traders should be cautious with any USD/JPY short positions as this could blow out any time. NFP this Friday will certainly play an important role on the trend that is about to start.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

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