USDJPY, Build Huge Descending-Channel, These Are Important Zone!

Jul 28, 2020

Hello Traders Investors And Community, welcome to this analysis where we are looking at USDJPY weekly timeframe perspective, the recent price-events, the current formation, its importance, and what we can expect from this pair regarding next weeks and months. This pair has been in a weak but steady downtrend since it established its highs at 118.5 where it formed heavy down moves since these tops where created, now there are some important factors that need to be considered for a continuation or reversal to the upside. Currently, I detected some interesting signals which can prove worthwhile in further development and trade placement.

As you can watch when looking at the chart is that USDJPY is just moving in this huge huge huge downtrend falling channel formation where it already formed several bearish wave counts to the downside and establishment of the lower boundary which you can watch marked in my chart with the dark-grey lines. Currently, the pair is moving on to form the last major wave count and therefore complete the possible wave D and E of the overall downward wave-count. Which will mark the completion either with another touch of the lower boundary or with a stabilization before this boundary at the range between 99-25 and 100.65 where some solid support is lying.

Overall we can expect this pair to continue its downward movements till there is support found which reverses this movement or it will go on, for a reversal consideration it is from high importance that USDJPY holds the 98.8 level which you can watch marked in orange in my chart, when the pair falls below this level it will likely continue with bearish downward pressure. When the pair stabilizes in the blue back-up zone you can watch marked in my chart there is a good potential that it moves and reverses in this range to test the upper boundary of the huge downward channel and when it is strong enough move above it but still this is not continued the direction remains to the downside.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.

Sep 13, 2023

Note

ANALYSIS UPDATE: USDJPY continued with the completion of the wave count within the channel before a massive breakout completed a bullish reversal.

Since the USDJPY formed the bullish breakout channel completion it reached all target zones and continued in the further direction.