USDJPY is making lower high and lower low. But if you go to daily or weekly time frame, it is currently at very important support zone.
But before looking for reversal we can enter a short position.
There is multiple supporting confluences for short position.
#1 previous support zone into resistance
#2 trend line
#3 Fib Retracement
Use risk management when...
As you can see it is maintaining a trend line and also an important zone(resistance area converted into support). And also the support zone is perfectly aligned with the fib.
And also at the weekly support area. Wait for conformation. Use risk to reward ratio when entering the trade .
