- Bears have filled the gap in 6J at 0.0073.
- Technicals are mixed at the moment, but trade opportunities favor the bulls.
The gap at 0.0073 has now been filled in the Yen futures contract. We have been waiting for this to happen for over 3 weeks now, but the time has arrived. The chart is still bearish, but the bulls may begin to accumulate any day now with the expectation of a rally just over the horizon.
Since the gap is filled, which is a bullish sign, we need to look for other indications that the bulls will take over. At the moment, the next level bulls would be looking at as a support would be the 50% Fib level at 0.00727. A bullish candlestick formation off this level could be enough for bulls to take long positions with stops below the most recent low on the chart.
The MACD, however, is bearish and has just crossed below the 50 level. Because we know the MACD is a lagging indicator, we know we can front-run it in this case, and it’s not necessary for it to turn bullish before we take our positions.
A strong move below the 50% level with no sign of a bounce from there would lead prices lower toward 0.00712, and that throws the bull case out of the window.