What's up investor friends?
USD/JPY continues its long-term bearish trend for years. As can be seen in the weekly chart below:
During the whole month of January the pair was inside a bearish wedge, trying to break the 105.35 and 104.64 support levels, but only managed a false breakout, followed by an ascending movement during the month of February and breaking the wedge.
The pair is currently at a very important point, as it is very close to the downtrend line at 109.40. Undoubtedly a very strong resistance that has already been tested about 4 times.
The next hours and days will be crucial to determine the next move of the pair. The price action along with the candlestick patterns will indicate a nice entry.
In case we fail to break the resistance (which is most probable), the next downward move would be about 440 pips to the price of 104.50.
Important
The information provided in this publication should not be considered as an investment recommendation. Trading cryptocurrencies, forex, stocks, among others, is risky.