USDJPY Summary - The big sell commences.

I would like to extend my heartfelt apologies for the gap in my analysis over the past few months, during which I faced a family incident in April this year. Now, let's turn our attention to the USDJPY pair, which has undergone a significant development. The JPY pairs, as a whole, have shown remarkable resilience as they repeatedly refrained from breaking the prevailing trendline. However, the most recent event on 26th October marked a significant shift in this trend. USDJPY reached the uppermost reversal zone, accompanied by the formation of a massive pin bar. Subsequently, after a brief consolidation phase, it presented the first substantial sell signal in several months.

When the Asian market opens, we should be prepared to focus on a potential sell entry. For those who might miss the initial entry, there remains the opportunity to catch a retracement pullback for a short-term buy. In this scenario, we could wait for the market to approach the FIB 0.5 to 0.618 zone, signalling another favourable entry point for a sell position.

Enjoy the analysis.