USDJPY seems to be losing some STEAM on this current uptrend, which is to be expected as we have gained some significant value and rather quickly since USDJPY hit its bottom around the 128 area.
Multiple tests of the upper channel trend line, and a consolidation of the price action give clues to the next move. A retracement and retest of the BOTTOM CHANNEL TRENDLINE on our h4 chart is very highly likely. Look for another rejection of the upper channel and subsequent bearish momentum candle for short entry.
ALTERNATIVELY, Swings can safely be resumed around the bottom of the channel, near the 133 zone.
Some traders MAY mislabel this pattern as a HEAD AND SHOULDERS, although the structure is similar, labeling this pattern as such can cause confusion as the price action could easily retest and return to the top of the channel. NECKLINE of a "potential" Head and Shoulders pattern has been drawn to illustrate the break of the neckline and the invalidation of said pattern.
Remember traders, keep it simple, trade what you see, dont over analyze
Multiple tests of the upper channel trend line, and a consolidation of the price action give clues to the next move. A retracement and retest of the BOTTOM CHANNEL TRENDLINE on our h4 chart is very highly likely. Look for another rejection of the upper channel and subsequent bearish momentum candle for short entry.
ALTERNATIVELY, Swings can safely be resumed around the bottom of the channel, near the 133 zone.
Some traders MAY mislabel this pattern as a HEAD AND SHOULDERS, although the structure is similar, labeling this pattern as such can cause confusion as the price action could easily retest and return to the top of the channel. NECKLINE of a "potential" Head and Shoulders pattern has been drawn to illustrate the break of the neckline and the invalidation of said pattern.
Remember traders, keep it simple, trade what you see, dont over analyze
Comment:
BASED ON USDX ANALYSIS USDJPY COULD MAKE NEW HIGHS BEFORE ANY BEARISH MOMENTUM COMES INTO PLAY BE CAREFUL