After a huge bull run in the end of 2016, USDJPY actually started to slow down and consolidate, and is now in a 2-week downtrend making lower highs and lower lows in a parallel channel. Watching the 1H chart for the next few days we could see another bounce off the upper limit, and a great short trade to take to the 113.000 area for about 230 pips.
On the other hand, as price approaches the trend line we could see a break and retest situation, and in that case take a BUY position up to the recent swing high of 118.500 for about 250 pips, and stops back within the channel.
Fun Fact: Both bounces off the upper trend line happened at the .618 retrace of the previous move..and you guessed it, my prediction of the next trend line bounce is right at the .618
Coincidence? Probably...
On the other hand, as price approaches the trend line we could see a break and retest situation, and in that case take a BUY position up to the recent swing high of 118.500 for about 250 pips, and stops back within the channel.
Fun Fact: Both bounces off the upper trend line happened at the .618 retrace of the previous move..and you guessed it, my prediction of the next trend line bounce is right at the .618
Coincidence? Probably...