Type:
Bearish Momentum
Key Levels:
Resistance: 0.007362
Pivot: 0.007296
Support: 0.007126
Preferred Case:
On the H4, with price moving below the ichimoku cloud and in a descending trend channel and trendline, we have a bearish bias that price will continue to drop from the pivot at 0.007296 in line with the pullback resistance, 61.8% fibonacci projection and -27.2% fibonacci expansion to the 1st support at 0.007126 in line with the -61.8% fibonacci expansion and 100% fibonacci projection .
Alternative Scenario:
Alternatively, price may reverse off the pivot and rise to the 1st resistance at 0.007362 at the overlap resistance in line with the 50% fibonacci retracement .
Fundamentals:
Japanese Finance Minister Suzuki said that the Japanese government is concerned about the Yen’s recent rapid weakening, giving us a bearish bias on the Japanese Yen.
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Written by Desmond Leong
Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.
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