USDJPY can rebound in the S/T but the bounce might not be sustainable.
USDJPY is rebounding higher after finding support at the confluence of the 88.6% Fib of the August low to the October high and the 141.4% extension of the October low to the November high. There are now 2 possible outcomes from here. a) we are forming an inverted H&S formation in which case the pair can move back to re-test the 112.30 resistance area or even the broken symmetrical triangle’s support (as resistance) or b) we are simply forming a triangle in which case we should break down without producing a stronger rebound first. A daily close above 111.40 or below 110.30 will confirm which of the 2 technical scenarios is unfolding.
Steve Voulgaridis
