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.
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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