USD/JPY - Yen Stronger After Drop
The previous week left us with an inside week. The market tested the lower area and the possibility of a bullish inside week failure rises. To be mentioned is also the confluence with the week's new bracket low.
Moving forward to the daily periodicity we can see a break out of the microbalance area with an outside day/bar which should be the first sign of a change in the market context. Perhaps from balanced to trending again. The market tested the lower extreme here as well.
Glaring on the hourly perspective we can observe the larger wick at the lows which should be a sign of absorption. Waiting for some additional bullish pattern to go with the scenario of a possible repair of yesterday's drop.
The strengthening Yen should have an effect towards the Indicies such as ES. It already showed some bearish behavior in the late hours of yesterday's session. Additionally, we saw a rise in the Gold prices which is kind of a confluent 'sign' with the drop in USD/JPY.
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