Measuring Strength of Market and Tokyo

USD/JPY 1-hour chart, source: forexfactory.com

 Currency pair USD/JPY charts interest traders, the patterns in the weekly chart and in 4-hour chart. In 4-hour chart the price made the turndown, double-tops pattern in late May and dropped and it attempts to build the reverse double-tops, that is, double-bottoms patterns after the decline. It seems to complete the pattern and the price goes high again.

USD/JPY 4-hour chart, source: forexfactory.com

 In the weekly chart, the currency pair has repeated the pattern of rapid diving and recovering for weeks. The dropping the last week, the recovering this week, too. It makes 105 price band supporting price band and attempts to rise again.

The features in the charts make the market participants such as traders expect the advance for a while, even in mid term. We get the long positions? It needs the guess.

The gain of the price means strong U.S. Dollar in USD/JPY chart. And weak Japanese Yen. But the other currency pair charts tells another story. After the disappointing U.S. non-farm payrolls, greenbacks declined against the major currencies including Japanese Yen. In this week USD keeps traders in short bias, then USD/JPY? JPY should gain against the greenback and the attempt of rising should fail and failed to build the double-bottoms pattern in 4-hour chart.

Tokyo tries to stimulate its economy via weak JPY. The rising price in this chart reflect Tokyo's mind and wish. But the market doesn't move as they wish. Tokyo measures its strength with the market. Our interest is not who wins but how we response.

USD/JPY weekly chart, source: forexfactory.com

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