USD/JPY /Weekly/ - Ability to short with the main trend

FX Forecast - USD/JPY /Short/

Our expectations:

Let's start with W1 - We are seeing a long-term downward trend and price correction to key levels of resistance that it fails to break through. Price Action shows that traders are firm in the direction and it's down. There is a W1 reversing bar formation - a strong negative signal. Supporting the bears is also the 50-year moving average, which is not drilled in the upward direction. DeMarker is in the over-purchase area and points down - a signal for a new bearish wave. Fibonacci 50% of the last wave survives and 38.2% is already drilled in the downward direction. The road up to 23.6% looks clean.

Going down one graph down - D1 (Basic Chart), it becomes clear that we have also formed H & S at levels of resistance that is being activated at the moment. In such situations, the conservative trade implies waiting for the day bar to be closed under the line, but at the moment we can afford to enter into a bargain right now, as the foundation in support of the yen is unwavering. Low oil prices weigh heavily on the energy sector, which holds the largest share in stock indices, and the debt problem in Italy is getting worse with every passing minute.

SL: 110.334

Alternative Scenario: If the price goes over the right shoulder of a hedge and stays there in several consecutive bars, the negative scenario will ruin and we are more likely to see a raise.

Read more:

• AUDUSD: key levels where we are looking for short positions
• AUDUSD bounces off the resistance zone despite the positivism during the Asian hours
• EURUSD in a tight range during the Asian session
• EUR in a recovery mode, but vulnerable | Technical levels
• EURUSD continues ranging in the early EU session. NFP data in focus at 15:30