10-Feb-2014, GMT 10:30
Thursday and Friday of last week, were marked with a reversal of moods. USD/JPY bounced from below 101.00 and reversed the weekly candle into an upside-down Pinbar with a low somewhere around 50% of the 2H2013 rally as well as 21WMA. This provides about 100 pips demand area which will likely push the price higher into the next mid-term upward wave. Looking closer to a lower Timeframe (4-hour) Fibonacci happens to be useful once again and connecting it with a standard S/R and Price Action we receive two important price levels: 101.90/80 and 101.50/40, both near round price levels (figure and half of it). Therefore we’ll look for a retracement somewhere between 102.00 and 101.40 before shooting up, towards 103.25 and 104.75.
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Just for the record, this week’s calendar contains several important dates for the US. We believe that better than expected data will drive risk appetite higher as well as USD/JPY higher, and that will confirm that the US economy is continuing its pick up. Also watch out for the new Fed presidents’, Janet Yellen’s testimony on Tuesday.
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