I spy with my pippn’ eye not one, but two indecision candles on USDJPY. There appears to be two spinning tops sitting sexily right on a major support level. This indicates there is a stalemate between the bulls and the bears as neither is camp able to get the upper hand. Will we see a bounce or a break? If you’re part of the bull camp, wait for a candle to close above the 84.00 handle for a move to 84.50. Now, if you’re bearish on the pair, look for a convincing candle close below 83.50 to confirm a breakout to the downside.
Boy did the yen strut its swagger on the charts yesterday! Sizzzzzlin’! Oooh, but wait.. That long-legged doji just above the 106.00 handle where the pair has previously found support ain’t making the yen look good. Heck, even stochastics is at the oversold region! Yikes! Hmmm, maybe the bears are just making things a lil interesting and letting the bulls snatch a few pips by letting them retrace some of their loss from yesterday’s sell-off. Watch out for a candle close below yesterday’s low, as that could indicate that the bears are in control again.
After yesterday’s sell off, are we gonna see some trader lovin’ for the euro today? Stochastics seems to suggest so! Just look at the lines being in the oversold turf and that possible bullish divergence. Mighty sweet eh? That hammer at 0.8250, which, by the way, is a minor support level, is lookin’ nice for the bulls too. However, it may be too early to tell whether it is the buyers who have the upper hand in this joust. For all we know, we may only be in for a retracement! Keep a close eye on those Fibs, especially the 61.8% level, and see if it holds.