USD/JPY Ascending Scallop Formed Straight After the Gap

December 04, 2017 09:41

Following the possibly most substantial US tax overhaul since the 1980s, the US Senate gave a significant boost to the USD last night. The corporate tax rate should be cut from 35 percent to 20 percent. The USD/JPY opened much higher than it closed on Friday, making a runaway gap that hasn't been closed as of yet. Previous analysis followed exactly as planned before the pair dropped due to out of the blue news that Flynn will testify against Trump.

At this point, the USD/JPY is barely retracing from the W H4/ ATR pivot confluence -113.05-20 zone. It could go for 112.65 retest, but the gap will be almost closed completely only if it gets to POC zone 112.20-45. There we could see a bounce towards the 113.60 zone. However, if we don't see a retracement, then pay attention to 113.20. The move above it might lead to 113.60.

W L3 - Weekly Camarilla Pivot (Weekly Interim Support)

W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC - Point Of Confluence (The zone where we expect price to react aka entry zone)

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