USD/JPY – Long Tailed Pin Bar, Loses Key Support (1hr chart)
After holding key support levels on pullbacks for weeks, the USD got hammered post FOMC and the USD/JPY with it, losing 2 handles in a jiffy. The intra-day lows were at 119.28, and from here we saw some strong algo buying forming a long tailed pin bar off the lows.
For now, we have a slightly bearish tune short term with a long term bull trend in place. If the bulls want to maintain this bullish view, they’ll need to hold the daily lows, so weak pullbacks there maybe bought. There is two key resistance levels ahead which were support, coming in at 120.64 and 120.31.
Impulsive selling from here should attack today’s lows and hint the bears want a little more pie. A daily close below 119.28 adds further risk for greater losses.
