USDJPY Short - Trendlines and Indicators
USDJPY likely fall to 108.1 - possibly lower to 106.5
The monthly trend (white line) has been aimed gradually down since the huge climb in late 2016. The daily trends (red line on top showing resistance, green line on bottom showing support) suggest that UJ has hit a strong level of resistance at 111.3, and is now heading to the bottom of the channel. 4h lines (blue) confirm the resistance at 111.3. AO and MACD are both turned negative on 4h, and RSI is below 50 (46) and heading down. CCI is at 77 and turned down. EMA 5 has crossed down on EMA 10. These indicators all suggest a strong downward movement is imminent. UJ will likely return to late-may support at around 108.1 (pink arrow), and could move further down to 106.5 (purple arrow) - or lower as monthly trendline shows potential to return to 104.5.
I am shorting, targeting 108.1. I will re-evaluate at that point and consider holding until 106.5.
The monthly trend (white line) has been aimed gradually down since the huge climb in late 2016. The daily trends (red line on top showing resistance, green line on bottom showing support) suggest that UJ has hit a strong level of resistance at 111.3, and is now heading to the bottom of the channel. 4h lines (blue) confirm the resistance at 111.3. AO and MACD are both turned negative on 4h, and RSI is below 50 (46) and heading down. CCI is at 77 and turned down. EMA 5 has crossed down on EMA 10. These indicators all suggest a strong downward movement is imminent. UJ will likely return to late-may support at around 108.1 (pink arrow), and could move further down to 106.5 (purple arrow) - or lower as monthly trendline shows potential to return to 104.5.
I am shorting, targeting 108.1. I will re-evaluate at that point and consider holding until 106.5.
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