05.08.201918:49 Forex Analysis & Reviews: USDJPY in bearish trend after exiting long-term triangle pattern

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USDJPY is trading at 106. In previous posts we noted the importance of 108 as the break below it has given us a bearish signal when price exited the long-term triangle pattern.

Red lines - triangle pattern

USDJPY has broken below the triangle pattern and back tested the break out area and the lower triangle boundary at 109. The rejection was a bearish signal. Price not only got rejected at the lower triangle boundary from below but also got rejected at the weekly Ichimoku cloud. This double rejection is another bearish sign. Trend is bearish and we expect price to continue lower towards 104 and lower. As long as price is below 108 trend will remain bearish.

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