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The pattern started when the pair rebounded from 80.557 and slowed down above 200 day SMA at 79.305 where the pair is currently trading. Technical indicators on aggregate point at appreciation of the pair on 1D time horizon indicating that the pair should continue moving towards pattern's resistance. The SWFX market sentiment shows that 73% of trader currently hold long positions on the pair expecting appreciation of the pair. In addition, in the range of 100 pips from the current market price 60% have posted buy orders. Long traders could set the first targets at the 20th of August peak/daily pivot (R2) at 79.645. If this levels is breached, next targets could be set at daily pivot at 79.691 (R3) and weekly pivot (R1)/psychological level at 80.000.
Technical indicators on aggregate point at appreciation of the pair on 1W. Short traders, who expect that pair might not breach 80 USD/JPY psychological level, could set the first target at the 16th of August dip/daily pivot (PP) at 1.2339. If this level is breached, next targets could be set at the Fibonacci retracement (38.2% of move since 24th of June) at 78.952, 200 day SMA at 78.738 and daily pivot (S1) at 78.603.
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