We saw a break through the channel formed on the daily chart previously over the past trading week. UJ rallied all the way up to the 112,800 region but faced strong rejection of the weekly resistance zone which stayed firm. I am still very bearish on this pair however with the recovery DXY is making we could see this pair rally all the way up to the monthly trend line (Orange downward trend line) before we see any bearish action. With the high amount of news for these 2 currencies coming up this week a break and close above the weekly resistance could see us test that trend line or it could also be a false break and then drop towards monthly support or even further towards the descending trend line on the Daily chart.
Keep an eye out for this on market opening as you do not want to get trapped into a false buy before you see major drops from this pair.
I am still fairly new to technical analysis and would love some feedback on my analysis :)
Keep an eye out for this on market opening as you do not want to get trapped into a false buy before you see major drops from this pair.
I am still fairly new to technical analysis and would love some feedback on my analysis :)