On the weekly, the USD/JPY has a strong level of support in which price has touched 3 times and reversed. A failed head and shoulders reversal pattern can be seen on the third touch of this strong support. Price is right now forming the beginnings of a descending triangle which signals a break on the downside once the pattern is complete. However, there is a possibility for triangles to turn into rectangles when given enough time so what appears to be the beginnings of a descending triangle could turn into a rally upward to complete the formation of a rectangle.
On the 4 hour, a two touch point trendline can be observed. The long term trend on the weekly is not assisting us in determining what the trend is. The short term trend is currently upward and is being supported by this trendline. Until there is a decisive break below the trendline and a retest of the line, the current sentiment is to remain in long positions and place stops an adequate distance below the line.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.