Hi Traders! USDJPY sell opportunity forming at the moment. A detailed analysis of this bearish setup is as follows:
USDJPY D1 Chart:
On the daily chart 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 an evidence of bearish pressure. As per the book scenario we may now expect pullbacks to happen and currently it looks like a pullback is happening. We may now look for more bearish evidences on lower timeframes in order to join the bears.
USDJPY H4 Chart:
On the H4 chart we have a good downtrend line that has formed and the price is respecting this dynamic resistance so far. Currently the price is nearing this downtrend line, we also have a good resistance zone around this area. Hence if we didn’t get a valid breakout here, we may then expect the price to respect this critical area and move lower again. We also have potential bearish divergence that is forming at the moment.
USDJPY H1 Chart:
On the H1 chart the price has created a potential triple cycle to the upside, we also have a critical zone that has formed based on the fibo levels of the cycles. We may now expect one more push higher from the current zone towards this critical zone with bearish divergence to form, we may then start looking for sells with more bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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