On April 8th we predicted an imminent bullish move on the USDJPY pair(https://fxsits.com/usdjpy-signals-for-bullish-continuation/).In that post we said that, only if Fibonacci level 23.6 was broken we could see prices soar bullishly. However, looking at today’s H4 time frame. You can clearly see the formation of falling wedge.
At level 105.968 we see price find support before the bullish reversal happens. Looking at the H4 chart, you see price break the bearish long term trend-line on the chart.And later moving towards the Fibonacci level 38.2 zone. Also note that this has acted as a Resistance level for numerous times. In the chart above you see how difficult it is for price to break past it.Thus, signalling a strong resistance level with so many touches.
We see how price resisted at fibonacci 38.2 before retracing to form a lower high twice at level 105.968 .Now we see price rest on the short term bullish trend-line. Forming a pattern similar to a falling wedge.
Our analysts at fxsits predict that, If price continues bullish and is above Fibonacci 38.2 .Then level 108.577 could be our new resistance level. However, if price breaks below the short term H4 trend-line. Probabilities are we could see level 107.039 act as a Support. If price breaks past this level this will leave level 105.968 exposed.For more information on specific entries join our Smart signals trading group and trade profitably.
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