1st Support : 0.0074905
2nd Support: 0.0074080
On the H4, with prices moving above the ichimoku indicator, we have a bullish bias that price will rise to the pivot at 0.0076525 where the swing high 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 0.0079195 where the swing high resistance and 161.8% fibonacci extension are.
Alternatively, price could drop to the 1st support at 0.0074905 where the pullback support is. Once there is downside confirmation that price has broken 1st support structure, we would expect bearish momentum to carry price to 2nd support at 0.0074080 in line with pullback support.
Since it was stated that the central bank won’t hesitate to add stimulus if the economy needs it, we have a weak 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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