Good day traders!
Looking at the dollar yen chart on the 4 hour time frame, we see an inverse head and shoulders pattern. This is a bullish pattern and if the neckline at 84.4 is broken with a full bodied candle, we can expect the dollar yen pair to continue the uptrend to 85.5 afterwhich, we can expect some resistance from the top line of the uptrend line.
Failure to break the neck line and a fall below the bottom channel line at around 83.0 can shift the whole outlook to more bearishness and we can expect the pair testing the 82.5 support level that is also the tip of the inverse head.
Nevertheless, do take note that we are in a period where the market tends to be unpredictable and erratic. This is due to the holiday period and coming Christmas holidays that will see many traders off for the holidays with their families. So many traders trading forex might also be away from their trading terminals.
If you are thinking of trading forex at the current moment, ensure that you are using the right forex trading strategies and have identified the market landscape properly before putting on any trades. Don’t trade forex for the sake of trading. Do so in a calculated manner. Trade forex only when there is a clear setup for you to put the odds on your side.
Till then. Success to your forex trading efforts.
Singapore Forex Trading Blog