USDJPY has finished a bearish ABCD pattern. As we can see, this whole pattern took four days to complete. As we expected, the price started to go down after the pattern. However, recently, the price met support here around 110.50; will the price continue to go down?
The price now reached the 61.8% Fibonacci level of the previous bearish ABCD pattern. The 61.8% level refers to comparatively high pressure, which could change the direction of the price line; looking at the price now shows that holds true. The price started to fluctuate, and we can catch an upward trend beginning here.
The stochastics are at a perfect point, not overbought, no oversold. Two lines just in an upward trend and make a stable bullish signal. Also, the RSI shows the same situation. Although two lines seemed to cross, they separated all of a sudden, still making a bullish signal.
The big picture of USDJPY is an upward one, and the bearish ABCD pattern was just a wave; it could not change the total direction of the price line. Now the price is back in an upward trend.
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