USDJPY, Develelops Rising Wedge, Target Ahead When Confirmed!

Hello Traders Investors And Community, welcome to this analysis about the current situation is USDJPY and where we are heading further with price-action, I found some significant signs and signals which will determine the further outcome of USDJPY, at the moment it is still trading in an uptrend but this can change dramatically as the uptrend is weakening. Therefore we are looking at the 4-hour locally timeframe.

As you can see in my chart USDJPY is trading in an overall weakening uptrend on the middle-term which is building an excellent rising wedge at the moment, with already three touches of the lower boundary and two touches of the higher boundary. Such formations almost always break to the downside with a high percentage probability and as we are in a weakening uptrend this probability increases highly within the current situation facing USDJPY.

There is still a third touch of the upper boundary remaining which you can see marked in my chart, after this touch it is heavily possible that we will get a reversal there which will catapult us outside the wedge to the downside. As you can see this whole scenario needs to be confirmed with a break of the lower boudnary as marked in my chart, when this happens the target at 106.5 which you can see marked in orange will be activated.

At the moment this is an optimal textbook opportunity for trading USDJPY on the short-side but even though this is a high possible short-setup there is still a little percentage possibility remaining that it will break to the upside, in this case, it is the smartest option to wait for the confirmation like marked in my chart to set up the short there will be still huge profit potential left. After this scenario has confirmed completely we need to elevate and watch if USDJPY manages to hold the support and form a support or more downside is expected.

Alright, thanks to everybody for watching, support for more market insight, and all the best!
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Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: USDJPY formed the breakout below the boundary to complete the ascending triangle formation.

USDJPY after completing the ascending triangle formation reached all of the target zones.