Chart Structure: JPYINR made higher highs at 69.85 and then on again at 72.26. But at 72.26 prices JPYINR faced stiff resistance 4 times. JPYINR prices on such strong resistance collapsed all the way down to 53.50.
Price Pattern: A smaller price pattern of the flag can be observed in the daily chart of JPYINR. This bullish flag can be identified as part of a continuation pattern. The daily trend is up since bottoming out at the low of 53.50. Breakout from this bullish flag can be anticipated on the upside. The post pattern breakout target will be 63-67after crossing 62.50 decisively.
Moving Average: 200dma is broader trend following decisively within daily time frames and is also acting as resistance to daily JPYINR prices. Post flag breakout JPYINR prices may take support on this 200dma.
Technical Momentum Indicator:
The slow stochastic level is currently at 70 after having touched & gone above 100 in the deep oversold zone. Slow stochastic at 70 is an excellent entry point for a long trader, as we have seen decisive upward move in JPYINR price..
Technical Conclusion: No clear Bullish & Bearish structure is being observed in the daily time frame chart. But technically in JPYINR currency pair daily trend is up and thus bullish positions can be profitable. On crossing 200dma at 62.50 bulls may become more active.
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