27.06.202218:23 Forex Analysis & Reviews: USD/JPY: upside continuation or larger drop?

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USD/JPY Up Channel!

The USD/JPY pair increased in the short term after ending its strong drop. Now, it is trading at 135.24 at the time of writing. The price action developed an up-channel pattern, a flag formation that could bring a downside continuation.

As you already know from my analyses, 135.58 represented an upside obstacle in the past. So, this level and the channel's upside line are seen as upside obstacles. On the other hand, the channel's downside line represents a downside obstacle. I'll wait for the rate to escape from this pattern before buying or selling.

USD/JPY Trading Conclusion!

Jumping and stabilizing above the 135.58 and above the channel's upside line activates a potential growth towards the 136.68 higher high.

Staying below the upside obstacles and dropping below the minor uptrend line (channel's downside line) validates more declines.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.