USDJPY Week of Oct 25 – 29 Outlook
Recap of past week
The retest of month low made in the week before resulted in a bounce. And a subsequent retest held that low and created a potential w. spring formation. Unluckily close of the week failed to close higher.
Next week outlook
The yellow zone will be of extreme interest should that be retested from above and resulting in a bounce to break above 81.50. That can power a rally to break above the red zone and potentially reverse this prolonged downtrend.
If red zone is tagged first however, the strength of the run up is likely questionable, similar to the BOJ intervention.