USD/JPY Topping Action

Daily and 4H: I mentioned in the previous video post that the USD/JPY was showing some signs of weakness with a rejection from rallying above 91.00. There a deceleration of the market as we saw in the 4H time-frame, a converging triangle, which the market looked to break in the previous session.

The daily as shown in the video shows 2 differet degrees of swing projection, both eyeing the 87.00 area. As we see in the 4H, it is just above it, near 87.10.

The 4H time-frame also shows possible supports in the bearish scenario. The 50% area is a test of bearish strength. The 100% does not have that much implication, and the 87.00 the upper boundary of a major support zone.

1H: The 1H time-frame shows details of the action throughout the Asian-European regional sessions, which is the start of the current global session.

The market stalled at the 90.40 area ahead of the Asian session, but dipped as it gone underway.

However, the start of the European session brought support, but not before a clearout of the 90.15 support, but was held at the 90.00 psychological support and the SMA200.

A sharp upswing to start the European session is stalled just ahead of the US session, and when the US session got underway, the pair declined, held below 90.70.

The high of the previous daily session was at 90.85, a note of bearish direction, despite a surge in momentum seen in the stochastic.

The market is bearish in the long-term and has been only bullish in the short-term, but is now turning bearish as well in the short-term.

This suggests an intermediate-term bearish attempt is getting underway. Look for a break below 90.00 as a confirmation for the outlook stated above in the 4H chart analysis.

Capital Market Services, L.L.C.
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.