~ Week Of October 10th 2016 ~
Are The Bears Ready To Take Control Again?
Published by Jay - October 9th 2016
On the 29th of July the USDJPY currency pair saw a massive push down by the sellers in the market to the tune of around 350 pips in one day. A subsequent retrace back to an important level on the chart once again saw the sellers take control. By Market close on Friday we can see that price has again respected that exact same level with a large and noticeable rejection, showing it to be an important one in traders' minds.
So will we see the bears now take control again when the market reopens? If they do we could expect to see price move into the low of the current price range. Something to be mindful of though when trading such conditions is the fact that the market may react around the midpoint of a range as can be seen from previous congestion that formed to the left of the current price.