FOREX CHART ANALYSIS NOV 11 - NEW DEVELOPMENTS
After the turmoil from the beginning of the week, the market is quiet down. Continuation patterns will apppear more. Pay attention!
- Bleak outlook for the UK and for the GBP as well. Specifically, official data showed that the UK labor market declined rapidly before Finance Minister Rishi Sunak introduced measures to support the Covid-19 pandemic. The National Bureau of Statistics said Tuesday that in the three-month period through September, Britain recorded a record-breaking 314,000 workers, 181,000 more than in the second quarter.
- President-elect Joe Biden's transition group is looking at legal action against the federal agency's delay in recognizing Joe Biden's victory over President Donald Trump in last week's election.
- Excitement moves on the market to vaccine news earlier this week eased in Tuesday's trading session, with the JPY and CHF reversing some of the losses due to market uncertainty about how or when Any vaccine can be released.
USD/JPY is accumulating after the last rebound. The bullish pennant pattern is clearly forming. Combining this signal with the bullish engulfing pattern on the daily chart we are ready for buy orders. There are currently two positions to do this: When the pattern is complete or when the price pulls back, retest the MA20 on the H4 chart. The possibility is around 104.5 (buy only when there are signals).
Price has not decreased as expected after creating a bull trap around 1.190. However, the accumulation following this pattern accompanied by a bearish engulfing set is a good signal for the sellers. Continue to maintain short orders. You might consider replenishing your position when the 1.175 zone is broken.
The price is still slowly approaching the upper boundary of the rising channel, the confluence area of 1.320 - 1.325. There are no major changes so the old strategy remains. A downside correction is expected around this price zone. In case the price breaks and goes up, it is necessary to consider the breaking force before considering entering the order following the current uptrend. Don't rush entering orders at this time.
After creating a bear trap and a bullish pin bar pattern around the bottom since November 2018, the price did not rebound much. However this development is not to the detriment of reversing traders. You can continue to hold your orders and consider adding positions when the price breaks down by 1.31. Trend traders should avoid entering orders at this point.
The price leveled off after creating a bearish pattern on the daily chart. There is no new transformation so we keep the old view. There is a chance that a downward correction will appear. Stop the buy orders. Notice the range range with an amplitude of 0.725 - 0.735.