The USDJPY trend on the lower time frames remains down, will it continue or will the trend change?
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The USDJPY price is back at the previous highs on a weekly chart, this could see the weekly trend continue higher. The JPY has been gaining strength recently which could continue in the short term. When the price is in an uptrend on the weekly chart but in a retracement phase, we can see a downward trend form on the daily, 4hr and hourly time frames. This will likely continue until the price finds support or changes the trend, in which case our bias will change.
At the moment the price is forming lower highs and lower lows, and until this changes we should remain bearish on this pair. The daily candle looks to be closing as a bearish inside candle. This could be a sign of another impulse phase forming. Adding confluence to this is the trend on the hourly chart has turned bearish with a new low. This then allows us to identify resistance for short trading opportunities in line with this recent trend development. The price could retest the previous lows or the highs where the selling pressure came into the market. If bearish price action appears at either of these levels we could look for short opportunities back to the lows.
Did you see our GBPUSD Analysis? You can see it here.
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