I got the feeling, USDJPY is seen as short for longterm. Considering monthly timefrime I could imagine, that last sell pressure was kind of reaction to long uptrend. So the sell off might be an ABC correction to EW from year 2012 to 2015. Looking at wave 5 of that EW, where much bullish activity has been and much activity during wave C of ABC correction I could imagine, that USDJPY is not really bearish.
I know, this is not useful for trading at the moment, but I would be quite cautious to step into shorts.
I painted some levels, that might point to support and resistance zones. Regarding how USDJPY run through that zones on way up and back down, it looks to me like aggressive buys and, as reaction, sells to save profits.
For long view I think USDJPY might start another move up.
What I like is the geometry of the lines in EW move up and ABC move down. They look quite parallel. This makes the idea more valid to me.
I know, this is not useful for trading at the moment, but I would be quite cautious to step into shorts.
I painted some levels, that might point to support and resistance zones. Regarding how USDJPY run through that zones on way up and back down, it looks to me like aggressive buys and, as reaction, sells to save profits.
For long view I think USDJPY might start another move up.
What I like is the geometry of the lines in EW move up and ABC move down. They look quite parallel. This makes the idea more valid to me.
