Get ready for the next Bearish Move on USD/JPY
Good morning traders! Today we will analyze USD/JPY. This pair is in a particular situation now, and we believe that it may be a good situation from which it is possible to take advantage.
🔸The price moved in a bullish channel for almost all of 2021, in a clear uptrend.
🔸A few days ago, it faced a solid resistance zone (where the price started the bearish movement in 2020) and was unable to penetrate it.
🔸We saw a clear rejection, and our short-term target for the move was the channel's uptrend line, which had been well respected.
🔸The price did not find enough demand on the trend line, and it was broken down.
Now we are facing a bearish scenario, and what we expect is the following:
🔸The idea is to wait for the corrective pattern to finish (here, we marked a potential flag, but it can be a triangle, a pennant, etc.).
🔸If it makes a breakout to the downside, then there will be a high probability of a movement in that direction. The target of the move is the next support zone.
🔸The price moved in a bullish channel for almost all of 2021, in a clear uptrend.
🔸A few days ago, it faced a solid resistance zone (where the price started the bearish movement in 2020) and was unable to penetrate it.
🔸We saw a clear rejection, and our short-term target for the move was the channel's uptrend line, which had been well respected.
🔸The price did not find enough demand on the trend line, and it was broken down.
Now we are facing a bearish scenario, and what we expect is the following:
🔸The idea is to wait for the corrective pattern to finish (here, we marked a potential flag, but it can be a triangle, a pennant, etc.).
🔸If it makes a breakout to the downside, then there will be a high probability of a movement in that direction. The target of the move is the next support zone.
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