On the H4, with prices moving above the ichimoku indicator and broken out of the descending channel , we have a bullish bias that price will rise to the pivot at 0.007629 where the overlap resistance and 61.8% fibonacci retracement are. Once there is upside confirmation of price breaking pivot structure, we would expect bullish momentum to carry price to 1st resistance at 0.007784 where the pullback resistance, 127.2% fibonacci extension and 78.6% fibonacci retracement are.
Alternatively, price could drop to the 1st support at 0.007490 where the pullback support is.
Since it was stated that the central bank won’t hesitate to add stimulus if the economy needs it, we have a bullish view 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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