Conclusion for today’s USD JPY technical analysis:
The USD JPY remains range bound and a bearish bias is favored with price returning to the lower boundary at 104.647.
USDJPY analysis for today is carried out on the 6 hour timeframe using a candlestick chart. Attention is paid mainly to the current chart patterns and their likely implications for further price development in the USDJPY.
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Price action for over 2 years is covered starting from May 10, 2017. A range bound environment is provided as the best case scenario for the USDJPY with the upper and lower boundary indicated as 114.385 and 104.647 respectively.
Also indicated during the period of study is the 200 and 50 Moving average to help in detecting trend changes based on the moving average crossovers. In addition, January 9, 2019 to April 24, 2019 produced a rising wedge (diagonal) chart pattern (ideally bearish) in the USDJPY with the pattern confirmed via a falling window (gap) on May 05, 2019.
The long term bearish bias is also supported by the slope of the 200 moving average (MA) pointing downwards as well as the 50 MA. Any retracement is expected to test the 200 MA before resumption of the downtrend and price is not expected to recover back into the wedge.
The USDJPY is expected to target the lower boundary of the side trend at 104.647 upon resumption of bearish strength. A study of indicators and/or momentum can also aid in proper judgement of or timing of orders for a short (sell) trade(s).
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