USDJPY Short - Break-Below of Rising Trendline
Updated
Since USDJPY recovered from a sharp fall, it was on the rise within a rising channel as seen in D1 chart.
The price has made 2 waves of bullish trend in order to form a rising channel and the price is seen making retracement from the top of the channel.
In the H1 chart, the rising trendline which has supported the price to the top of the rising channel was broken below.
The price has then retraced once after the break-below and awaiting the 2nd wave of retracement that's expected to be completed within the supply zone.
Consider selling USDJPY as the price reaches between 110.7 - 111.00.
The price has made 2 waves of bullish trend in order to form a rising channel and the price is seen making retracement from the top of the channel.
In the H1 chart, the rising trendline which has supported the price to the top of the rising channel was broken below.
The price has then retraced once after the break-below and awaiting the 2nd wave of retracement that's expected to be completed within the supply zone.
Consider selling USDJPY as the price reaches between 110.7 - 111.00.
Note
The price is finally breaking out from a 2-days range and will soon enter the supply zone. Many traders might have attempted a short at the top of the range and this bullish movement is likely to have trapped these buyers. The higher the price goes up from here, the more short trades stop-loss would have triggered which will lead to a fast drop eventually. Let's wait out a bit longer to observe for a strong selling intention.
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