USDJPY Short - descending broadening wedge
USDJPY has come up out of the descending channel and has now tested the long term flip zone (former strong support) 3 times without breaking through. Each time the lows has been lower and lower and following the upper bounds of the previous channel - forming a descending broadening wedge.
If we look at the RSI we can see the divergence as the USD has lost its upward momentum with each failed test of the resistance. The last test on Friday closed below.
This combined with my view that next week will be a negative reaction to the trade talks and the "deal" between Us and China, which will affect the dollar negatively suggest that the USDJPY will head lower towards 106.00.
If we look at the RSI we can see the divergence as the USD has lost its upward momentum with each failed test of the resistance. The last test on Friday closed below.
This combined with my view that next week will be a negative reaction to the trade talks and the "deal" between Us and China, which will affect the dollar negatively suggest that the USDJPY will head lower towards 106.00.
Trade closed: stop reached:
Stopped out.