Conclusion for today’s USDJPY analysis:
The minimum target for price action is 113.389.
USDJPY analysis is carried out on a daily time frame with coverage of over 26 months of price action starting from the price peak of 118.662 on December 15, 2016. Previous analysis was provided here.
The main goal of the current analysis is to provide a long term framework or perspective for the USDJPY that will be highly invaluable in projection of future price movement.
Price bottom i.e. price low of 104.656 achieved on January 3, 2019 provides the second pivot for price that is used to define the lower boundary of a rectangle bottom chart pattern.
A parallel line drawn over 113.985 is used in this USDJPY analysis as the upper boundary of the rectangle bottom; a chart pattern that ideally has bullish implications.
Also of great importance is the 104.824 price level as it also helps establish the horizontal boundary required for a descending triangle chart pattern. The upper boundary of the aforementioned pattern is the downward sloping red line on the chart highlighted in red.
The descending triangle is ideally bearish. This therefore means that a bullish breakout from a descending triangle cannot be ruled out, and in fact a bullish resolution of the pattern (i.e. chart pattern failure) can result in very powerful bullish price swings.
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