The USDJPY at the end of March tried to break the downtrend and it partly succeeded. But as we can see, a set-up is forming, which might provoke the continuation of the fall. What's next?
On the chart we see the formation of a bullish wedge, the essence of which is shown in the structural chart. After the downward movement, a consolidation in the form of an ascending wedge is formed.
Within this range, there is an energy gathering for a move in one direction or the other. Since we have preconditions to the wedge, we will consider trading within the range with the subsequent break of support and price fall as a priority.
Strong resistance: 133.87 (false break-down), 135.00.
Strong support: range support, level 132.300 (breakdown strategy)
I expect consolidation continuation within the specified range, followed by fall after the support is broken down. Target is 130.00
On the chart we see the formation of a bullish wedge, the essence of which is shown in the structural chart. After the downward movement, a consolidation in the form of an ascending wedge is formed.
Within this range, there is an energy gathering for a move in one direction or the other. Since we have preconditions to the wedge, we will consider trading within the range with the subsequent break of support and price fall as a priority.
Strong resistance: 133.87 (false break-down), 135.00.
Strong support: range support, level 132.300 (breakdown strategy)
I expect consolidation continuation within the specified range, followed by fall after the support is broken down. Target is 130.00