USDJPY Still downward channel but bullish signal emerged

The pattern on the USDJPY pair is a Channel Down since the trend reversed on October 21st. As long as the price stays inside this Channel, the trend will remain bearish with each lower Fibonacci level a potential target.

The MACD though has pushed the first major buy signal of this downtrend as it made a bullish cross last Friday. As a consequence, if USDJPY breaks above the Channel Down, we will most likely see a (counter?) rebound to the 1D MA100 (green) and 1D MA50 (blue). This will be the most important test to see if this new bearish trend will be sustained. Break above will invalidate it, rejection will confirm it.


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