By Admiral Markets
The USD/JPY fell heavily on Friday mostly because BOJ failed to deliver more QE. Additionally the BOJ didn’t cut the interest rare and logically enough, the Yen strengthened. Due to Abenomics in Japan, and follow through risk-on as US Equities performing strongly overnight, Nikkei surged up and that was reflected on USD/JPY which shows a hidden bullish divergence on H4 time frame. The Ninja, how we call the USD/JPY has provided us more than 200 pips on both Session Recap and the previous USD/JPY analysis if you followed it.
The price is currently retracing towards Friday lows but in addition to hidden bullish divergence we also see the trend line (purple color) just where the price divergence is showing up. The price POC is 101.28-58 (78.6, hidden bullish divergence, historical buyers) but due to divergence and trend line support, we might see the price rejecting off 102.00 too so watch it. If the price managed to close above 102.70 on 4h time frame we would see a continuation towards 103.50 and 104.60. The possible spike will be valid too if the price gets to POC2 100.55-85 ( L3,88.6,historical buyers ) so from the current standpoint USD/JPY looks like it could be bought on dips.
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Article by Admiral Markets
Source: USD/JPY hidden bullish divergence on H4 time frame
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