Good Evening People...
Tonight, I will be providing Technical Analysis for the USDJPY
Reasons being - This particular currency pair looks have approached a major weekly level
So, Lets get stuck in...
As always, I will kick off with the 'Top-Down' Analysis
Looking at the Monthly Timeframe - We can see that back in April '21 there was a breakout of a 4 year Descending Channel
Following this, the market proceeded to print Higher Highs/Lows
With this in mind - Yes, we are looking for Long Opportunities
But, not before moving down to the Weekly Timeframe
On the Weekly - I have marked out a long term Range
What caught my attention is - Over the last month, Price has tested the Resistance of this Range and began to travel south
Furthermore, the market may be forming a Head & Shoulders Pattern
We have the Left Shoulder & The Head completed - With Price heading towards the partial formed Neckline
So, are we looking at the beginning of a Reversal in the market?
After studying the Daily Timeframe - An Ascending Channel was identified
At the Support of this Channel [Where it looks like the market is currently heading - We have Confluence with this Channel Support & Horizontal Support @112.72
Additionally, the neckline of the potential H&S on the Weekly coincides with this zone for further Confluence
For me, this is the zone where trade decisions can be made
Personally, I will be looking for Price Action in the form of a Candle Stick for Buys
Alternatively, a Daily close below the confluence @112.72 would have me considering Selling opportunities
Updates will follow - When the time is right
Well, that's all for this evening folks...
Thanks for tuning in & Stay Cool