USDJPY inside bar pattern confirmed

The US Dollar was bullish against all of its major pairs on Tuesday. On the US economic data front, Existing Home Sales rose to 6.00 million on month in August (as expected), from 5.86 million in July, a level last reached in late 2006.

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending September 18th is expected. Finally, Markit's US Manufacturing Purchasing Managers' Index for the September preliminary reading is expected to rise to 53.5 on month, from 53.1 in the August final reading.

The Euro was bearish against most of its major pairs with the exception of the AUD and GBP. In Europe, Eurozone Consumer Confidence Index was -13.9 in first reading in September vs -14.7 in August. Economists anticipated the index to be flat. UK PM Boris Johnson announced in the House of Commons 6 measures to fight against coronavirus cases increase that could last for six months warning the UK was at a "perilous turning point". Notably, pubs, bars and restaurants will be forced to close at 10pm starting Thursday.

The Australian dollar was bearish against all of its major pairs.

Using the "technical Insight" research tool under the Market Analysis tab, we have identified a bullish technical event in the USD/JPY.

USDJPY confirms an "Inside Bar" pattern.

An inside bar tells us the balance between buyers and sellers, recently dominated by the bears, is evening out. We may see higher prices ahead.

An Inside Bar develops during a strong downtrend, when the trading range is completely within the boundaries of the prior bar. This suggests the balance between buyers and sellers is becoming more evenly balanced i.e. a weakening in power for the bears and increasing in power for the bulls.

Source: GAIN Capital, TradingView

Happy Trading

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