As we are all aware, USDJPY has defied gravity recently, and I am pretty sure a lot of people have been stopped out at various points expecting a reversal.
I am hopeful for a reversal now, however not ruling out a further stretch upwards.
the chart on the right is daily, whereas the left is H4.
On the daily chart see how the price didn't significantly break...
Taken two trades on this pair, many confluences to say it will become bearish. Firstly we have a Bat Pattern that is retesting the d zone, aswell as previous head and shoulders pattern after a bullish impulse leg indicating a reversal in the trend. Hope to see this trade play out, just need patience.
A good opportunity to get short in USDJPY:
-Rejection of upper trend line
-Previous support has become resistance
-Retracement up to the 618 level
I put the stop just below a Previous supply/demand level to allow me to take a RR of near 1:3, with the first target down at the last low
As advised yesterday USDJPY managed to jump above 102.85 where market activate farther advance that will face resistance zone for the downtrend line around 104.30-50
From that zone will expect a drop correction to hit the market toward 101.75 zone
Above 104.50 market will face another resistance at 105.00-20