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.
This Opinion piece/Views presents the opinions/views of the author. It does not necessarily reflect the views of MarketExpress, its publisher, the Company for MarketExpress, or its sponsor.
MarketExpress or anyone involved with MarketExpress will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
MarketExpress would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore MarketExpress doesn’t bear any responsibility for any trading losses you might incur as a result of using this data .
Disclosure: I wrote this article myself, and it expresses my own opinions.I have no positions in any stocks or index related stocks, and no plans to initiate any positions within the next 72 hours.
Suchita holds a Bachelor of Science Degree from MSU University, Baroda, Diploma in Financial Management from Xavier's Institute of Management, Mumbai and has undergone Comprehensive Program on Technicals Analysis from Bombay stock exchange. ...
