USD/JPY Breaks Bull Flag Pattern and Challenges 110 Again

Forex Trader, Analyst, Educator • Jun 6, 2018 at 7:14 AM EDT

The USD/JPY failed to break above the 110 round resistance level but price is now approaching the key zone again.

USD/JPY

4 hour

USDJPY - 4 hour - 06.06.2018

The USD/JPY failed to break above the 110 round resistance level but the price is now approaching the key zone again. The bullish bounce in the channel keeps the uptrend channel intact. The bullish price action is probably part of a larger WXY (purple) correction within wave Y (pink).

1 hour

USDJPY - 1 hour - 06.06.2018

The USD/JPY broke above the resistance trend line (dotted red) of the bull flag continuation chart pattern after bouncing at the support trend line which was probably a wave 4 (green) correction. The current bullish momentum could be a wave 5 (green) of wave C (blue) and aiming at the Fibonacci targets of wave C (blue). The wave C could also be a wave 3 if the bullish momentum is strong.

Disclaimer:

The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.