USDJPY SHORTS Weekly, Daily & 4hr Breakdown.

USDJPY SHORT THESIS
• Weekly: After creating new high and rejecting off 114.00 monthly resistance, price is currently in retracement phase and pulled back to 112.00 Monthly support + respected and rejected off both moving averages as well. However, I do not think these levels will hold as last weeks candle closed slightly below the ascending trendline + 112.00 monthly support. I do expect more downside movement to 111.00 weekly support, but I need to see a cleaner break of 112.00 support.

• This pair has been in an uptrend for a while now creating higher lows (HL) & higher highs constantly tapping ascending trendline. However, on Friday we saw a clean break of the ascending trendline + 112.31 support and made its way down to 111.65 daily support. Now awaiting retest of 112.31 resistance before shorting back to 111.65 support as it is a strong level looking back at previous data this level was the right neckline from inverse head & shoulder pattern and is still valid.

• 4hr: Price is in a bearish channel with the most recent touch being the bottom trendline forming a new low at 111.65 daily support. I do now expect price to now rally up to 112.31 daily resistance + 0.71 Fibonacci level before shorting this pair back down to 111.65 support.

Order cancelled:

Broke through 112.31 resistance + 0.71 fib level