USDJPY TRIPLE BOTTOM - Bullish ContinuationIt's safe to say it's been an exciting day in the Markets, and to be honest we don't expect that to change much over the next week. As Greece came out of the weekend with absolutely no progress whatsoever, Risk Aversion took a hold within the markets as investors started pumping their money in to "Safe Haven" arenas. One such Safe Haven is the Yen, and it seems this was a favourite. As the Currency Markets re-opened for trading many pairs had gapped considerably. The gap in the USDJPY however enabled price to retest the 50EMA AND the 122.5 Support Level.
This may prove important as the week progresses.
Additionally this important retest will be the third at said level, thus we have a Triple Bottom!
And Right on the 50% Fibonacci Level too! How convenient....
Of course all this is assuming volatility is at "normal levels", which we know it is not...
Pretending we don't see the kind of whipsaws and gaps that are most likely (yeah right!) here is the confluence that supports the trade:
1. Triple Bottom
2. Spinning Top Doji
3. 50EMA Bounce
4. 122.50 Support Rejection
5. 50% Fib Level
6. The Trend is your Friend
As per previous post, Profit Target 1 provides a good 2:1 Reward Risk and Target 2 a 4.2:1.
Reaching Target 2 however may require a bit of a fundamental push also as a VERY strong 20 Year Trend Line lays in the way ().
That said the Triple Bottom Set-up might be enough to get this push underway and with the NFP at the end of the week, we could well see Hawkish sentiment break price through...
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Thank you in advance,
Team FV.
