The Dollar strengthen
today after the better than expected report on Durable Goods out of the United
States for the month of April. This caused the USD/JPY to break above the
102.00 resistance level. Just below the 102.00 level, we have the 200 period
Exponential Moving Average on the 4 hour chart, as shown on the chart below, courtesy
of the Forex Broker Activtrades http://www.activtrades.co.uk/. We can clearly see that the
200 EMA has held back the price to the upside and has also contributed to
creating this zone a good resistance area. Now that the price has broken the
102.00, we should wait for confirmation of the breakout, maybe by showing us
two or three more bullish candlesticks and then the pullback to the same 102.00
level for a possible long entry. Let’s keep in mind that resistance becomes
support and support, resistance.
Excellent analysis!
ReplyDeleteI absolutely agree with your view.
It can be a false breakout. I need a bit more confirmation.
ReplyDeleteGood analysis but I would prefer to see a closing at this level!
ReplyDelete