JPY Weaker or Stronger?

USDJPY is having a good bearish situation but there is no sell signal yet! For that, we need to see the breakout of the neckline of the head and shoulders pattern, which can be now seen on the charts. What is more, we are having here a false breakout pattern, which is also promoting the drop. Price coming above the red area will cancel this negative approach.

NZDJPY is giving an opposite sign: buy, so here, JPY is about to get weaker. This view is supported by the false breakout (but in the long term) and the price coming back above a major resistance. Now, the chart is showing us an additional flag in the mid-term, which is bouncing from a support. In overall, that is a buy, but we need to wait for the price breaking the upper line of the flag first.

The last one is Gold, which is between the horizontal resistance and the dynamic support (long-term up trendline). We are waiting for the breakout here, which will give us, potentially a super strong trading signal.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis