Time frame: H4
Technical Analysis: The chart shows that the USD/JPY currency pair has formed a “Head and Shoulder” formation. On 18.07.19, after Fed John Williams comments, she managed to break the neckline of the head with which she activated the formation. The USD/JPY is currently testing the breakthrough again, with a 4-hour chart showing a “dodji” candle. This candle signals that the breakthrough is steady and it is possible for the pair to continue in a downward direction.
Indicators: At this stage, all moving averages play a role of resistance.
RSI is above its over-sold values, which allows the price to continue in a downward direction.
DeM is in its over-sold values, which does not support the “sell” scenario.
Alternative Scenario: If the price can break the neckline back and hold over it, the formation will be broken and a new price appreciation may be seen.
Trader Milko Zashev