USDJPY : END OF THE BULLISH TREND
- The market has been trading inside a bullish channel for 7 months (since Jan-2024) ; the mid to long-term trend was then bullish.
- Since the latest market top registered at a new all-time high, sellers have taken control.
This situation, boosted by taking-profit moves from long investors, has led the market to a pull-back.
However, Sell traders have been so powerful, that the market has registered a bearish break-out of its long-term bullish channel, ending the bullish trend and opening the doors to a deeper correction.
Both moving averages have just registered a bearish cross, acting as dynamic resistances to prices.
The DMI indicator clearly shows a high selling pressure environment within a more and more directional price action.
- This is a bearish configuration. Even if the market still hasn't registered any new bottom, the fact prices has broken-out their long-term bullish trend can already be seen as a bearish signal.
A complete bearish reversal isn't likely at this stage, but all the technical signs point towards a correction/consolidation scenario.
The next support levels can be found around 153.68 (38.2%), 151.11 (50%) and 148.55 (61.8%) by extension.
NOTE : An extended correction could even take place when the Federal Reserve will provide solid hints regarding its next monetary easing cycle, which would be seen as a headwind for the US Dollar.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- Since the latest market top registered at a new all-time high, sellers have taken control.
This situation, boosted by taking-profit moves from long investors, has led the market to a pull-back.
However, Sell traders have been so powerful, that the market has registered a bearish break-out of its long-term bullish channel, ending the bullish trend and opening the doors to a deeper correction.
Both moving averages have just registered a bearish cross, acting as dynamic resistances to prices.
The DMI indicator clearly shows a high selling pressure environment within a more and more directional price action.
- This is a bearish configuration. Even if the market still hasn't registered any new bottom, the fact prices has broken-out their long-term bullish trend can already be seen as a bearish signal.
A complete bearish reversal isn't likely at this stage, but all the technical signs point towards a correction/consolidation scenario.
The next support levels can be found around 153.68 (38.2%), 151.11 (50%) and 148.55 (61.8%) by extension.
NOTE : An extended correction could even take place when the Federal Reserve will provide solid hints regarding its next monetary easing cycle, which would be seen as a headwind for the US Dollar.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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