Hi Traders! USDJPY short term forecast and technical analysis is here. As we do in every technical post we are going to perform the multi-time frame analysis on this pair in order to find the possible trading opportunities. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. This pair definitely looks interesting at the moment so as usual we will start our analysis from the highest timeframe which would be the H4 chart here.
USDJPY H4 (4 Hours) Chart Analysis – Bullish Trend Pattern, Resistance Zone, Psychological level, Bearish Divergence
On the H4 chart we have a bullish trend pattern that has formed and the price which is moving higher has currently reached an important resistance zone formed by the 161.8% fibonacci extension level of the first wave at 110.578 and the 100% fibonacci extension level of the second wave at 110.481 and the price is respecting this zone. In addition to this the price is also holding below the psychological level 112 and also we have a bearish divergence that has formed between the first high that has formed on 19th March 2020 and the second high that has formed on 25th March 2020 based on the moving averages on the MACD indicator which we may consider as an evidence of bearish pressure. We may now move down to one timeframe lower and see if we have evidences supporting this short term bearish view.
USDJPY H1 (1 Hour) Chart Analysis – Triangle Pattern, Bearish Convergence, ADX Indicator
On the H1 chart the price was moving inside a triangle pattern, the price which was respecting this pattern so far has currently broken below the bottom of this pattern which we may consider as an evidence of bearish pressure. In addition to this the price has created a classical setup, we had a bearish divergence and then the price moved lower and created lower lows thus forming a bearish convergence for us, we may consider this as another evidence of bearish pressure. Also the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as another evidence of bearish pressure. Until the H4 resistance zone holds my short term view remains bearish here.
Forex Crystal Ball
Also Forex Crystal Ball indicated us that the dates 20th and 21st are critical ones for a top to be created based on the Forex Crystal Ball statistics and we got it perfectly.
Technical Analysis & Forecast Summary
USDJPY H4 (4 Hours) Chart Analysis
- Bullish Trend Pattern, Resistance Zone, Psychological level, Bearish Divergence
USDJPY H1 (1 Hour) Chart Analysis
- Triangle Pattern, Bearish Convergence, ADX Indicator
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