As we can see from the chart, USDJPY has been in an ascending channel for the past few months which is bearish.
At the current stage, the price seems like has broken the channel support trend line. However, the price currently is at the horizontal support area which means that it is possible for the price to bounce.
I have marked out 2 possible scenarios:
1) The price is likely to pull back slightly to retest the trendline and also for a continuation pattern (bearish flag) before moving to the downside.
2) The price can also bounce up all the way to the resistance area before going down again (market's reaction to Donald Trump's tweet regarding the trade deal with China).
In the mid-term, I am expecting the price of USDJPY to be heading downwards to the target price which I have marked out.
At the current stage, the price seems like has broken the channel support trend line. However, the price currently is at the horizontal support area which means that it is possible for the price to bounce.
I have marked out 2 possible scenarios:
1) The price is likely to pull back slightly to retest the trendline and also for a continuation pattern (bearish flag) before moving to the downside.
2) The price can also bounce up all the way to the resistance area before going down again (market's reaction to Donald Trump's tweet regarding the trade deal with China).
In the mid-term, I am expecting the price of USDJPY to be heading downwards to the target price which I have marked out.