Yen Index - Top Down Analysis

Starting with the 4 hour timeframe, the yen is finally starting to show some life as the oscillators give several indications. On the larger timeframe (reference charts below) you can see we're also testing the descending support. For now, I'm not suggesting a complete a reversal put a possible pullback towards the mid-channel pivot is warranted.

Let's now take a look at the daily timeframe.

== DAILY CHART ==


Taking a look at the daily view, stochastics and RSI are indicating oversold conditions as we approach the descending level of support. We might see a potential pullback up towards the orange area as illustrated on the chart. This would be approx. a 100+ pip bullish upside reward for those that are willing to take on risk at this 6 year low. At this point, overall the trend is bearish until price-action is able to climb above the 200 SMA.

Lastly, let's take a look at the weekly timeframe.

== WEEKLY VIEW ==


The weekly perspective prints price-action testing the lower descending resistance trendline. RSI is also showing some lack of bearish momentum as the oscillator bounced off 30. We still need to wait for MACD to give us some final confirmation before instilling some confidence of a possible pullback. If we get a bullish pullback, monitor the bearish mid-channel pivot for resistance as it coincides with the previous low on the weekly timeframe .

== IN SUMMARY ==

The Japanese's Yen is near a 6 year low as the war between Ukraine and Russia worsens. This doesn't mean however the market will disregard this opportunity to buy low. The overall trend is obviously bearish so for those that are seeking a possible scalp, be sure to position manage the trade as price-action may decide to continue the bearish trend at any given time.

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That's it. That's all. Trade safe. All the best.

Regards,
Michael Harding 😎 Chief Technical Strategist @ LEFTURN Inc.

RISK DISCLAIMER
Information and opinions contained with this post are for educational purposes and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors. Before deciding to invest in Forex you should consider your knowledge, investment objectives, and your risk appetite. Only trade/invest with funds you can afford to lose