The USD has begun the week on the front foot strengthening against the other majors. On Thursday, March 30, it remains the strongest currency bar the JPY. A few harmonic patterns are emerging on the USD. A USDCHF and USDJPY Harmonic Analysis will show what we may expect on those pairs in the sessions ahead.
30 March, AtoZForex – We may see a reversal on the USDJPY correction anytime soon. The daily chart candles on Monday and Tuesday, March 27 and 28 closed as bullish Tweezers. The 110.00/ 110.50 level appears to be a good level for buyers to come in.
USDCHF and USDJPY Harmonic Analysis USDJPY Daily Chart (click to zoom)
A bullish shark harmonic pattern has printed on the USDJPY daily chart. The pattern, which begun on February 7 has completed an XABCD formation. The PRZ, around the 110.00 psychological support may end the bearish correction.
USDCHF and USDJPY Harmonic Analysis USDJPY H4 Chart (click to zoom)
The bullish shark harmonic pattern is much clearer on the 4 hour chart. The 4 hour chart also shows a potential inverse head and shoulder formation. The neckline at 111.50 is the line in the sand. Above that level, a buy order may be placed.
USDCHF and USDJPY Harmonic Analysis: Possible seff-off on USDCHF?
On the USDCHF, a bearish harmonic pattern has formed on both the 4 hour and 1 hour charts. The 0.9978 level is key in this regard. It doubles as both a bearish shark harmonic pattern on the 4 hour and a bearish butterfly pattern on the 1 hour chart.
USDJPY and USDCHF Harmonic Analysis USDCHF H4 Chart (click to zoom)
USDCHF and USDJPY Harmonic Analysis: Possible entry and exit levels
On the USDJPY, the breakout of the inverse head and shoulder formation is key. Once the breakout is confirmed a long trade can be initiated. A close above 111.50 can be considered as a breakout. if that happens a long trade with a 100 pip stop and a 250 pip target can be placed.
On the USDCHF pair, a short order below 0.9950 neckline can be placed with a 60 pip stop and a 100 pip target.
USDJPY and USDCHF Harmonic Analysis USDCHF H1 Chart (click to zoom)
As always, don't risk above 2% of your equity per trade.
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