Downward correction is coming
16 November 2016, USD/JPY
Daily chart: bulls are in a very good shape. But the pair is overbought, which will cause a rollback without any breach of the rising structure (up to the middle Bollinger band, 104.78)
Н4: absolutely the same picture - the pair is rising based on ADX indicator, but the oscillator also shows signs of being overbought. We have to look for resistance, from where the correction process will start.
Н1: and another pre-correction signal: bearish divergence of the oscillator. We know that a strong trend movement are not easy to reverse, so you need to be careful when searching for a sell signal and in counter-trend trading. But buying is apparently too late.
Expectations: new highs will be reached and then a downward correction towards 108.50, 107.40 will start
Solutions: look for downward signals around 109.50, 110.00
Aleksey PanasenkoAnalyst of «FreshForex» company
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