The US dollar versus the Japanese yen currency pair is in an appreciation phase, but the bears are doing everything in their power to stall further bullish advancement. From this battle, who will come out as victorious?
The price oscillated in an ascending channel, starting from the 104.44 low and peaking at 109.48.
But it seems that the channel’s support trendline has been discounted by the November 21 candle, which unfolded just outside it. This can be considered as a bearish small victory in this big battle.
However, there still are factors that back the bulls in a very strong manner. The first one is the tweezer bottom that is consolidated by the candles of November 20 and 21, respectively. Even if the the first candle of the pattern can be amended because the upper shadow is longer than the lower one and thus it is dimming the bullish energy, the facts that the candle bodies are bullish and situated at the same level give the bulls the necessary hope that they still have what it takes to further push the price to the north.
The second one is that the price is still above an important support area, 108.13 respectively.
So, as long as 108.13 is not rendered as resistance, the bulls are still in the game. This can materialize in two ways. The first one is for the price to pierce and confirm as support the 108.85 level. The second one requires a false piercing of the 108.13 support.
If the bullish scenarios do take place, the main profit taking area is represented by 110.29. Only if the bears reconquer 108.13, then the target will be represented by 106.79.
After confirming the resistance of 109.19, the price head on for 108.43.
After falsely piercing the 108.43 support twice, the price is expected to extend at least to the next resistance area, 109.19, respectively.
Only if 108.43 is finally confirmed as resistance, then 107.92 will become a target.
Levels to keep an eye on:
D1: 108.85 108.13 110.29 106.79.
H4: 108.43 109.19 107.92
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