Since the beginning of the week up to this point the 1H chart has been creating a series of rebounds to create an inverse head and shoulders pattern. The neckline is running in at 120 pips which creates potential for a 120 pip trade after breaking the resistance.
There has just been a double bottom put into action which has already started to drive the price upwards. Bullish Gartley pattern in place too and Fibonacci retracements are final confimation of an upward trend.
USDJPY has repeated history since early May. With the continuous downtrend and uptrends, what is expected is another bullish movement very soon. If the support line is broken there is a possible chance of USDJPY continuing a bearish trend, although, with the ideas surrounding the DXY bearish trend continuing I believe the bullish trend will come into action.
The past few days a falling wedge has formed indicating that DXY is declining. After what was initially thought to be a double bottom rebound, it broke through that point and returned upwards, breaking that idea. Possible support line being retested at the time I am posting this. If support is broken continue trading the falling wedge, otherwise, SHORT!