USDJPY Daily Chart After winning the upper house election Prime Minister of Japan Shinzo Abe reiterated to add more stimulus to revive the ailing economy. Market participants were expecting 10 trillion yen for this fiscal but the efforts by BOJ could not meet the expectations. USDJPY which was moving in a higher high and higher low from the start of 2012, changed the trend by discontinuing the positive formation in the month of November 2015. Thereafter, prices are moving down by breaching its previous lows. From wave perspective, after completing five waves on the upside and marking a high of 125.85 in the month of April 2015, prices have started moving in a corrective mode. The corrective mode normally takes more time before the next rally starts. As of now it is moving in a double corrective pattern, in which it has completed wave b of second corrective and wave c on the downside will start, dragging prices lower below 100. In short, bear trend for USDJPY has
Showing posts from July, 2016
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MCX Zinc Anticipated on 1st June 2016(1st month Daily chart contract) MCX Zinc Happened on 1st July 2016 (1st month Daily chart contract) In my previous update dated on 1st June 2016, I had mentioned that " The bias for MCX ZINC remains positive as it can test 143 levels only if it sustains above 132 for considerable time" Zinc crossed the level of 132 and moved higher till my mentioned level of 143 which is 80% retracement of the previous fall. This gives an indication that the metal is moving in a flat pattern. However, the 80% retracement can also be extended till 100% or 123.6% of the previous fall, eventually ending it with regular or irregular flat pattern. It is imperative for prices to reverse sharply which will be the first indication that wave b of flat is over and wave c has started on the downside. As of now the bias remains positive for this metal.