Possible small downtrend channel with possible sideway mowe to the right edge. If break up, will start rally up to 108.
As expected before, this pair is in a midterm downtrend and seems to hit the bottom of the bigger chnnel presented by me before. Looking closer, at the 15M chart, I see possibility of a downtrend channel. Seems like price will heat the upper line at the level approx. 105,0 and than I exbect move to the downside to the level of 104,1.
USDJPY stopped by the channel that formed inside the bigger one. We have two options in my opinion: a) price will bounce of the channel's bottom line, go up to the level of previously broken short term uptrend and finally drop down to broke the channel (blue arrows) b) small correction possibile, then drop and break the channe, correction up to the bottom line...
Details on the chart. First short trade expected - price should bounce of the down terndline. Then trapped in channel will try to force the down trendline again. Once this will happen, will look for buy setup.
This pair seems to bump from the bottom of the channel started forming in 2012. After breaking the downtrend in Sep 2014, now retested the trendline and bounce up.