USD/JPY – Our expectations:
Daily – The price has reached a key level of horizontal resistance, formed by a basic horizon, 200SMA and 38.2% Fibonacci correction of the main bearish trend. Available Price Action, absorbing bar – negative for the price. The current short-term fix gives us very good short position positions with a maximum short stop. Shorts are also supporting indicators. DeMarker is in the over-purchase area, and 50 and 200SMA are swinging. For a more accurate entry, it’s a good idea to move on to a lesser graph.
H1 (MainChart) – The short-term upward trend is being dashed and the price is beginning to form ever lower peaks and lower bottoms. There is a Double Top formation that is activated earlier, and the price is currently testing the shape of the figure. This gives us a good positioning position with short positions and maximum shallow Stop Loss Order. The strong impulse in activating the figure indicates that the level is significant, and the current test is convenient to start building a short position.
Alternative Scenario: If the price goes above the resistance zone and stays there in several consecutive bars, the negative scenario will break and we are more likely to see a rise in the pair’s price.
Trader Petar Milanov