Potential Price Channel on USD/JPY Needs Lower Channel Low to Confirm – Would Be in Critical Decision Wave
A potential price channel on usdjpy needs a lower low to confirm.
The wave into a lower low would be the channel’s critical decision wave between starting a bottom (purple scenario) and setting up a breakout into a melt-down (green scenario).
The critical decision would be at the breakout level of a rising megaphone crash set-up. The target after breakout would be the level of the lowest touch on the formation bottom.
USD/JPY is Trying to Break Out of its Rising Megaphone (Orange) after Downwards Breakout from Triangle
When rising megaphone breakouts fizzle, the price typically megaphones across the breakout level.