USDJPY, Moving In Steady Down-Trend, These Are Important Zones!

Hello, Traders Investors And Community And welcome to this analysis about the current price-structure we are facing in the USDJPY, there are some highly meaningful signs in the charts which are indicating to me that we will continue with the so far establishes down-trend and that we will at least approach some lower levels where we have to consider the situation new again. I recommend that you read the analysis fully and also look into my account for other contemplated ideas about the markets.

As you can see in my chart USDJPY formed a huge descending triangle which is in the very almost occasions a bearish formation, therefore it is within the high possible range that we continue more to the downside. As you can see the price made three declining lower highs after touching several times the 100-EMA you can see in my chart, the 100-EMA serves as a big big big resistance here and also it is the horizontal resistance line in blue at 106.95 which is building the logical bottom of the huge triangle where the price confirmed to the downside.

Now as the overall structure looks more bearish than bullish we can expect to decline more, we have also formed a smaller head and shoulders formation which neckline you see in grey this neckline can be confirmed in the next time, it is just one more significant factor which plays into the bearish continuation to the downside. Traders who like to open a short here can do this, I will also look for a good entry-point here to take the profits on the way down.

Overall the logical target at 104.6 will be reached, this is the minimum target in the structure, from there we have to elevate and see if the price falls more or stabilize in this structure to form a reversal, will be interesting to define how we will continue. Furthermore, we are still in an overall bigger bullish picture as we did the way from 101 to 111 this bullish trend can continue and the current bear decline can be a correction of this which should be kept in mind.

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Trading effectively is about assessing probabilities not certainties.
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Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: USDJPY increased the bearish price action to reach the final target zones before the conversion of the trend emerged.