Could be heading towards correction - Bearish Cypher and AB=CD
Since $USDJPY broke out of a daily Triangle above the 120 resistance zone (now support), it rallied 600 pips, decline back to broken structure and bounced back from it, proving that what was resistance is now support.
On its second upward wave, $USDJPY formed a bearish Cypher pattern that its PRZ caused a 150 pips decline.
The price found support on the 50 SMA line and bounced back into the Cypher's PRZ and now we have also a small bearish AB=CD pattern (shown as parallel red line in the chart).
The bearish scenario here is to short $USDJPY based on the Cypher and AB=CD patterns , with a stop loss above 126 and the target zones are shown in the chart.
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On its second upward wave, $USDJPY formed a bearish Cypher pattern that its PRZ caused a 150 pips decline.
The price found support on the 50 SMA line and bounced back into the Cypher's PRZ and now we have also a small bearish AB=CD pattern (shown as parallel red line in the chart).
The bearish scenario here is to short $USDJPY based on the Cypher and AB=CD patterns , with a stop loss above 126 and the target zones are shown in the chart.
If you like this content, subscribe to my free newsletter or even become a member (press links below)
The Weekly Markets Analysis newsletters - goo.gl/HXjCPV
Become an Elite Zone member - goo.gl/5BNMMJ
