Japanese Yen is taking the heat

23 January, 2017

USD/JPY

Looking at the daily chart of the Japanese Yen, we can see that the bullish engulfing has formed next to the 50% Fibonacci level, which has been broken on the weekly chart at the points of 125.853 and 98.935:

So, it is wise to buy the pair away from the middle point of this engulfing.  It is going to serve as a support level, which will be in the range of 113.75-113.63. It is noteworthy that we can buy the pair at the forming level with the right shoulder of potential pattern “reverse head and shoulders”. We should rely on the candlestick patterns for now:

The delayed buying of the pair should be done away from the broken 50% Fibonacci level, which is located below:

Buy Limit 112.50, Stop Loss 110.00, Take Profit 120.00.

USD/CHF

As for the Franc, we should get back to the upper border of the broken daily flat. The idea is simple – we should buy an asset away from broken edge of the range:

Buy Limit 0.9950, Stop Loss 0.9860, Take Profit 1.0300.


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