Price Action on the Daily timeframes still very much continuing to hold the Bearish Longer term Descending channel since the beginning of 2017
Daily Time Frame:
4 Hour Time Frame:
USDJPY Analysis - Technical Bearish View. On USDJPY, Price Action on the Daily timeframes still very much continuing to hold the Bearish Longer term Descending channel since the beginning of 2017. Since then Price Action has formed Lower Lows in April 2018 and March 2020 at the 104.00 and 101.00 levels respectively. Since then, price action has also maintained the Lower Highs at the 114.00 level in October 2018 and 112.00 in March 2020 , giving us a clear bias over the longer timeframes. As delve down further to the recent price movements, on the 4hr timeframes price is currently holding this Descending triangle at present. Shorter term lower highs being confirmed by the descending trendline at the 109.00 and 108.00 levels respectively. Baseline support now confirmed at the highlighted 107.00 technical with a 3rd test being witnessed today. For the next move in price action as noted above, we do favour the downside movement. However, what is required here? Structurally, we do want to see an engulfing breakout below 107.00 level taking out the current support levels and initiating the downside move. For me I want to see the break and retest of the level before taking positions on the selling continuation. The short bias will be invalidate where we see a bullish breakout of the descending triangle breaching the last lower highs at 108.00 and breaking above both the 200 & 800 EMA Levels on the 4hr timeframes. At which point I would expect a retest of the 110.00 level.
By Dan Legg.