USD/JPY Breaks Support but is Immediately Bought with Vigour

Good morning traders,

I’m back in the office after a long weekend and just want to take my time today easing myself back into the price action that I missed.

Take a look at the unfolding USD/JPY price narrative that we’ve been following on the blog with price lunging below the major daily support level that we’ve been talking about…

USD/JPY Daily:

Click on chart to see a larger view.

…but nope, that certainly didn’t last long. The buyers stepped in and price immediately reversed with some serious vigour.

The momentum in the bounce back is highlighted by the fact that price didn’t even pause at the retest of short term support. It’s all about that higher time frame support level right now.

Now take a step into the intraday chart and take a look at how price actually reacted to the level…

USD/JPY Hourly:

Click on chart to see a larger view.

…Oh hello!

So here we can see that price actually gapped back through the level on Monday’s open. From there, momentum has taken hold and we can see why the cliche of not stepping in front of a moving train to pick a top is said so often.

Best of probabilities to you!

Dane Williams – Vantage FX

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Source: Vantage FX Blog