USDJPY – Down
Daily chart: bear managed another break of lower envelope and finally forced downtrend. In such situations there occur frequent rollbacks to middle Bollinger band (116.19), however, ADX is very strong, so putting money on growth would be quite reckless. Consider only selling.
Н4: there is localized resistance in 113.91 region (middle Bollinger band).
Н1: there is another local resistance level in 113.45 region (upper Bollinger band). We are also observing bullish convergence signs, so buyers also have plan B. However, daily chart has obvious advantages over hour chart, that’s why this whole situation looks like a bullish trap.
Expectations:
Core scenario – a new drop after touching one of the resistance levels: 113.45 or 113.91
Alternative scenario – a break towards 115.40
Solutions: Consider selling from 113.45 and 113.91 regions
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