USD/JPY , looking to break the diamond bottom (16th November, 2022)

attached is the 4 Hourly chart of the pair USD/JPY

RATIONALE:

Technical View :

As per our previous sell call given @ 150.800-151.800 for the tgt of 143, worked really well in a jiffy.That was the objective target of the pair, but as the more dollar weakness came because of the inflation softening, the pair got oversold more from 143 to 137.660 (the support area).

As can be seen in the picture attached the diamond bottom pattern has been formed on 4 hourly chart with positive RSI divergence above the moving average, indicating the momentum & bias might be changing again to short term correction till 143.250-143.700 where the downward trend line is drawn.

*** diamond  bottom is a very rare pattern with high probability & success ratio of almost greater than 90% *** 

PLAN:

we look to buy the pair between 138.575-139.000 for the tgt of 143.250.

the bias is clearly up even though the quick flash crash till 136.800-136.180 comes, don’t hesitate to add more..

Thank You,

Sanjay Galani, CMT, CFTe

Investment Director

UMA Network Ltd.