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USD/JPY Daily Outlook: Start Of Day Seeing Pullback Lower

Published 11/20/2016, 11:02 PM
Updated 07/09/2023, 06:31 AM

INTRADAY CHART

USD/JPY 60 Min Chart

BIAS: While 110.65-75 supports we should see gains towards 111.20-24 and later 111.35

Resistance: 111.17-24 111.35 111.52 111.88
Support: 110.65-75 110.41-50 110.10-15 109.75-79

MAIN ANALYSIS: The start of the day is seeing a pullback lower that should hold around 110.65-75 to then see gains to 111.20-24, a pullback and then continue through to 111.35. However, here take care. We should be due a deep correction of as much as 300 points.

However, this pullback is a little uncertain because there is no way to satisfy alternation in the "normal" way and therefore there is a risk of a shallower pullback - but I'll address that later. The first reversal from 111.35 should be down to 110.45-75 and later towards the 109.79 corrective low. Also note the 109.56 minor support and 108.95-109.25 area.

COUNTER ANALYSIS: Only above 111.35 would suggest follow-through to 111.54-88 and then to the next projection ratio at 112.25. It is possible but will be a very strong projection in a Wave v - almost 85.4%. However, we are seeing a 4-hour bearish divergence and also potential for an hourly divergence...

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