USDJPY, Below Major Resistance, Main Possible Bear-Flag Forming!

19 juin 2020

Hello, Traders Investors And Community, welcome to this analysis about USDJPY, the recent events, the current price-formation and what we can expect from USDJPY in the next hours and days. The last time USDJPY made this significant bear-move to the downside where it provided heavy bearish selling volume after marking its high at 10.810. Since then it was in a meaningful downtrend which can increase further when we do not get any bullish signs to the upside which will invalidate the bearish scenario and how I detected in the chart this is the more likely possibility at the moment therefore we are looking at the 4-hour local timeframe.

As you can examine when looking at the chart you can see that USDJPY is currently trading in this huge parallel channel marked in blue within my chart. As we found some resistance at the lower boundary we can expect some little up bounces the next time to test the remaining resistance levels in the structure. These are firstly the 100-EMA which provided the failed bullish cross with the 600-EMA and secondly the 600-EMA where we havea also a local mirroring-resistance which is together with the 600-EMA building up a coherent bearish-resistance-cluster in that level which will highly likely confirm to form the next steps in the possible bear-flag USDJPY currently develops.

Overall we have a decent bearish environment here with more downside potential after the possible bear-flag has confirmed finally when the wave-count ended. This will provide a bearish signal to the downside which can be traded aggressively with an entry immediately at the bearish resistance-cluster or with entry after the lower boundary of the possible bear-flag broke to the downside and the bear-flag has confirmed finally, traders should decide according to individual risk-preferences but the conservative entry after confirmation should be preferred here when considering this scenario there is still plenty of profit potential as the targets lying way at the downside.

In this manner, thank you for watching, support for more market insight, good weekend everybody, and all the best friends!

Information provided is only educational and should not be used to take action in the markets.

12 sept. 2023

Note

ANALYSIS UPDATE: USDJPY continued with the wave count within the channel formation to finally pull back heavily bearishly off the main confluence cluster.

Since the bearish pullback and completion of the wave count, USDJPY emerged with massive bearish momentum below the boundaries.