The USDJPY pair has been, since the 26th of October 2016, oscillating within a bullish formation from 104.01 to 105.43. Will the buyers resume leading the price?
Today’s major pivot point area is the 104.88 level where the sellers will likely take their chances to shift the price to their favour.
The latest stabilization of the pair below the 104.88 level is a good indication that the sellers may exert greater pressures to force the price to the downside.
The Stochastic oscillator has also confirmed that the price could aggressively drop at the 30 zone.
In the scenario where the pair decelerates, the price could fall to 104.01.
Alternatively, in the event where the sellers are not able to hold the price below the 105.43 area, and the buyers place greater pressures, the pair could rise back to 106.30.
- The ISM Prices Paid (Oct) and the ISM Manufacturing PMI (Oct) releases are expected to have a strong influence on the U.S. dollar
- The BOJ Outlook Report release is expected to have a medium influence on the yen
· Probable trend (Bearish): 104.88
· Bearish take profit target: 104.01
· Stop loss target: 105.43
· Alternative trend (Bullish): 105.43
· Bullish take profit target: 106.30