USDJPY testing strong resistance trendline

Last week the pair moved up for more than 130+ pips and reached the previous M_R1. At these levels we have also located the resistance from the trendline which is drawn from Dec.2016/Jan.2017 highs and got tested several times until now without being broken. On Friday last week, the price tested again this line but it did not manage to break above it so we believe that the bears will be active here. We will try to take a short position on the market and try to ride the move down to M_PP. If price breaks and closes above this line on the daily chart we will consider that the direction of the move is changed the structure then may serve as support.

Comment:

Yesterday the pair had a strong bullish day, managing to close above the green resistance trendline. Today the price made a new high but then during the day and now at the moment of writing the pair has lost a large portion of its gains and now is trading at 110.685 levels, creating a bearish candle. Since the pair is not testing a strong resistance level, we expect that the next direction of the move, at least for the short term until the end of this week is down.

Comment:

The pair encountered resistance at the expected area around the down green trendline. The price is struggling to get past this area until now so we expect some bearish action for the remaining of this week too. For the next week analysis, our attention should be around the M_PP and the resistance of the green trendline as we expect the price action to be decided at these structures.