FX forecast / USD/JPY-D1 / Our expectations:
The long-term trend in the is still downward, despite signs of life that USD has giving in recent weeks. Undoubtedly, the dollar's momentum was strong, but I think it's time to adjust in a downward direction. The price has reached strong levels of resistance and has recorded Price Action, which clearly shows that bears have a resource to take the lead - Shooting Star. A barrier to price growth turned out to be 200SMA, 38.2% Fibonacci correction of the main trend and horizontal zone of resistance. The impression is also made of the formation of a bottom flag formation, which also supports the shorts. In addition, the indicators point to a decrease. Sequential counts 9th on top - the probable end of the ascending impulse. DeMarker points down from a surplus zone - a likely start of a new impulse in the opposite direction.
SL: 110.55876
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.
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