Potential Bearish Shark Entry Within USDJPY Channel

May 1, 2018

Over the past 2 weeks USDJPY has been extremely bullish. This move has been taking place within a large channel on the daily chart. Within the channel a local trend line has formed and USDJPY is currently approaching it. After the recent bullish rally, the market is seeking to retest a previous structure level at 110.50. The move developed into a shark pattern whose potential reversal zone centers around this previous structure. I believe that there are two potential entries for this pair, depending on how the market decides to go forward. The first entry would be near 110.50 which would be the retest of the upcoming structure. If the market breaks 110.50, the second possible entry would be at 111.35 which would be another retest of structure as well as a move off of the 1.13 extension. Potential targets would be 108.00 for entry 1, and 107.50 for entry 2.