The JPYXXX rally has been going on for quite some time now… October of 2020 to be precise and we have reached the higher end of the recent multi-year range. We have NOT quite made it to the 2018 high but the old cluster of highs from 2017 at 134.35 has so far capped the upside…… we have seen a bit of a correction in the last few trading days and starting to test some key pivot levels here at 133.15 (mid daily BB) and 133.25…. that is NOT all… we also witness a peak in the ADX, which would tell us, that the topside momentum is fading. Whether we correct via a lower EURUSD or a lower USDJPY has yet to be seen. We keep a very close eye on this 133.15-25 pivot area…. would suggest that a break of 133.00 would probably be the key moment for us to feel that the next push lower towards 132.00 is happening…. even if we do NOT yet break down…. the peak in the ADX would tell us that we might have to switch the approach from buy the dip, to sell the rally… the ADX can correct in 2 ways….. 1) boring sideways range for 1-2 weeks or 2) a correction lower in price. One thing i am comfortable to say….I do NOT expect the 134.35 pivot to break anymore.
we WATCH 133.15-25 pivot area as a clue to if and when the cross were to roll over