Crypto Industry News:
The Japanese Financial Services Agency (FSA) is reportedly cracking down on cryptographic exchanges that offer anonymous transactions or have weak identity verification practices in preparation for inspection by the Money Laundering Special Interest Group (FATF) this fall.
The FATF will allegedly carry out an investigation to check the strength of the Japanese anti-money laundering policy (AML), which includes the rules for running cryptographic exchanges and other financial services.
In the 2008 FATF report, Japan received the worst possible result of identity verification in financial institutions. Ten years later, the Japanese FSA issued business upgrade orders for companies that did not take adequate AML resources, such as allowing users to register in their accounts using a post office instead of a personal home address.
According to the report, Japan was the first country to implement a registration system for cryptocurrencies. In October, the FATF changed its principles to include cryptographic exchanges in the AML regulatory framework and asked the G-7 member countries to start implementing the strategies for registration, licensing and monitoring of cryptocurrency exchanges.
Technical Market Overview:
The ETH/USD pair has bounced back up above the short-term trendline resistance around the level of $240.00. Nevertheless, after the Shooting Star candlestick pattern appeared on the chart, the market has started to reverse again. After the corrective cycle in wave 4 is completed, there is still one more wave up missing in order to complete the whole impulsive wave.
Weekly Pivot Points:
WR3 - $390.48
WR2- $336.28
WR1 - $299.99
Weekly Pivot - $239.34
WS1 - $205.35
WS2 - $147.46
WS3 - $113.47
Trading Recommendations:
The best trading strategy in the current market conditions is to buy the local pull-back as wave 4 is in progress in anticipation of the wave 5 to the upside. It might take some time for the wave 4 to complete, so it does not have to be a day-trading strategy. Please pay attention to the technical support at the level of $226.17 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $212.12.
