USDJPY analysis is carried out on a with coverage of over 26 months of price action starting from the price peak of 118.662 on December 15, 2016. The main goal of the current analysis is to provide a long term framework or perspective for the USDJPY that will be highly invaluable in projection of future price movement.
Price bottom i.e. price low of 104.656 achieved on January 3, 2019 provides the second for price that is used to define the lower boundary of a bottom chart pattern.
A parallel line drawn over 113.985 is used in this USDJPY analysis as the upper boundary of the bottom; a chart pattern that ideally has implications. Also of great importance is the 104.824 price level as it also helps establish the horizontal boundary required for a chart pattern.
The upper boundary of the aforementioned pattern is the downward sloping red line on the chart highlighted in red.The is ideally . This therefore means that a breakout from a cannot be ruled out, and in fact a resolution of the pattern (i.e. chart pattern failure) can result in very powerful price swings.