Important lines coming together, more weight on short
USDJPY has a monthly, strong trendline - which is moving down (green trendline on the chart).
There's a weekly uptrend, supported by 2 trendlines - hitting both the monthly trendline, inside a monthly s&r zone.
These are weighing heavily on the trend and is likely to break at least 1, maybe both weekly trendlines. A smaller, weaker trendline is already being challenged (circled on chart). RSI is backing us up on the weekly chart, with lower lows.
This is a difficult projection as there is a lot of trendline power in combination with S&R to be broken. The pink horizontal lines represent (slightly) weaker S&R, and is most probably being ignored as turning point because the short move has a lot of power behind it. The strong trendlines are the more important points to look for a big retrace move or price turning. The 2nd one should be even stronger than the first one. Conversely, if price BREAKs both lines, you can expect a very strong move downwards. The fewer days it takes to break, the stronger the move will be.
If it would start moving we'd probably look at 96.98x for TP1 and 93.75x for TP2, but this is to be evaluated.
The projected point where price could break trough the Weekly trendline is just a suggestion. It doesn't have to be valid Price could might as well go back up first towards our weaker trendline or even the green trendline.
I'll be making another chart as soon as price action starts confirming our move.
There's a weekly uptrend, supported by 2 trendlines - hitting both the monthly trendline, inside a monthly s&r zone.
These are weighing heavily on the trend and is likely to break at least 1, maybe both weekly trendlines. A smaller, weaker trendline is already being challenged (circled on chart). RSI is backing us up on the weekly chart, with lower lows.
This is a difficult projection as there is a lot of trendline power in combination with S&R to be broken. The pink horizontal lines represent (slightly) weaker S&R, and is most probably being ignored as turning point because the short move has a lot of power behind it. The strong trendlines are the more important points to look for a big retrace move or price turning. The 2nd one should be even stronger than the first one. Conversely, if price BREAKs both lines, you can expect a very strong move downwards. The fewer days it takes to break, the stronger the move will be.
If it would start moving we'd probably look at 96.98x for TP1 and 93.75x for TP2, but this is to be evaluated.
The projected point where price could break trough the Weekly trendline is just a suggestion. It doesn't have to be valid Price could might as well go back up first towards our weaker trendline or even the green trendline.
I'll be making another chart as soon as price action starts confirming our move.
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.