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USD/JPY- Trading In A Downward Channel

Published 01/05/2016, 06:32 AM
Updated 02/02/2022, 05:40 AM
USD/JPY
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The USD/JPY pattern is trading in a downward channel on a 4 hour time frame. The bottom end of this channel is becoming narrow which means that the price has a little room to move if it was going to continue its movement towards the downside. The price is trading well away from its 20 day moving average which means that the volatility is still high but it is not at its extreme end as it is trading within the Bollinger band.

The RSI is showing a clear sing of divergence which reflects that that while the price is making the lower low, the momentum is not confirming this. Therefore, the bias is towards the upside.

Important Zones

USDJPY 05-01-2016

118.05-118.22 Support

120.46-120.27 Resistance

Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.

by Naeem Aslam

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