Bruce Wayne would be proud! USDJPY Bearish Bat Pattern

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POTENTIAL BEARISH BAT PATTERN


In my previous USDJPY Analysis I broke down an overview of what is going on with this currency pair. Price is approaching our resistance near 114.00 for the third time on the daily . It has struggled to really break this area.

This is just a potential setup. Not a trade. We are currently working within a Daily Bullish Channel and Weekly Bullish momentum. I will wait to see the harmonic pattern completion then assess from there.

It is nice to see that we are losing volume as well while this price rises, it is giving a clue that we are approaching overbought conditions.

If/When price reaches the zone I will look for a 1HR bullish trendline break, and 1HR reversal pattern with confirmation.

We need all the confirmation we can get because we are going against the Bullish Channel.

Also if you look at the Dollar Strength Currency Index you will see the dollar is approaching a level of strong resistance and has also formed a bearish harmonic, (I'll post an analysis shortly)

If the DXY drops then we will most likely see this pair drop as well. (Weak dollar means you need less Yen to equal a Dollar)




Namaste,

-G

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