From investor to scalper is a series of analyses in which every day we take one financial instrument under the microscope and the analysis includes a detailed look at a given value starting from the monthly/weekly chart and ending with H1 / M15.
As a result of the declines going on since June 2015, the USDJPY currency pair reached exactly after one year vicinity of an extremely important support coinciding with the 50% Fibo correction of previous increases. There the supply strength definitely weakened and after a few months of consolidation there was a very strong demand response, as a result of which for three consecutive months we observed very dynamic increases.
Looking at the weekly chart, we notice that these increases have reached the downward trend line, where in December a supply reaction appeared. Since then, we have been observing slow declines, but the price still oscillates around this trend line.
On the daily chart, we notice that the market has been moving in a horizontal trend for a long time. As a result of recent declines caused by the rejection of the above-mentioned downward trend, the price again reached the box support, where last week there was once again a demand reaction.
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Due to growth lasting since then the market has reached the local resistance area and last Friday there was first supply reaction.
However, it should be noted that the declines that have been going on since then have not been very dynamic. In addition, they only reached the area of local support, where today the first demand reaction has already appeared. Rejection of this zone could open the way to new highs.
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