USDJPY 4hour Analysis June 5th, 2022

USDJPY Bearish Idea

Weekly Trend: Bullish
Daily Trend: Bullish
4hour Trend: Bullish

Trade scenario 1: All timeframes are back to bullish on UJ as we saw a massive rally last week up to our 131.000 resistance level.

Ideally, we can spot a reversal here and ride price action to lower support levels.

The problem with UJ at the moment is that the daily timeframe is beyond overextended.

We desperately need structure formation for the daily which is all the way down near 125.000 support… a long way away.

Trade scenario 2: I wouldn’t recommend any long scenarios until we spot daily structure.