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October 28, 2021

USDJPY: Descending triangle is ready

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As can be seen, the upward trend had lasted for almost a month on USDJPY since Sep 21, which was a long and solid trend. However, it was stopped on Oct 18 by a descending triangle. The descending triangle has been formed for ten days. Now, the triangle is almost finished. During the process, the price line moved down from the upper part of the Bollinger Bands. Also, the Bollinger Bands shrunk, and the price keeps testing the lower band, which means the price is ready for a breakout.

 

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Ichimoku cloud overlapped with the price line, which means the price could make a turn; here, we consider this a bearish signal. Also, the cloud shrunk; this is a breakout signal. So, from Ichimoku, we can see that the price may break down. MACD has twisted for a while; recently, it made a bearish cross. And both Williams R% and Stochastics went down; this is a strong downward signal that the price would go down soon. As for now, we have enough bearish signals and a descending triangle. Let’s expect a downward trend.

 

 

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