Yen. Waiting for an upside reversal
03 November 2016, USD/JPY
Daily chart: the pair is making a breakthrough of the lower Bollinger envelope, but everything happens on the adjustment ADX, which usually means the lack of trend potential breakout levels. So expect a bounce up from the area of 102.42.
H4: the pair is oversold, and some formation of an inside bar is possible. If the closure will happen exactly like this, it would be a strong signal for beginning of the upward correction towards 104.00 (middle Bollinger band).
H1: a very strong and expressed bullish convergence also confirms the upcoming correction. There is still the deepening of the lows, but it is clearly going to reverse.
Expectations:so, expect the upside reversal in the direction of 103.09 and 103.64.
Trading solutions: look for long positions from 102.42 to 103.09 and 103.64.
Aleksey PanasenkoAnalyst of «FreshForex» company
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