USDJPY Descending Channel| Daily S/R/|Low Volume|RSI EquilibirumRepost**
Evening Traders,
Today’s analysis – USDJPY – Prices action is projecting down in a descending channel , until broken, price is likely to continue trading within two boundaries.
Points to consider,
- Trend bearish (consecutive lower highs)
- Daily S/R breached (Resistance)
- Oscillators equilibrium
- Low Volume
We can conclude that the immediate trend for USDJPY is bearish due to consecutive lower highs. This will be proven otherwise upon a bullish break of the channel.
The immediate structural resistance is the Daily S/R, any rallies into it is considered a bearish retest until proven.
Both oscillators are trading in an equilibrium, this is indicative of volatility drying up before an impulse move.
Volume is clearly below average, expected in consolidations, an influx will directly correspond with price movement.
Overall, in my opinion, USDJPY is trading in a descending triangle thus path of least resistance is bearish . Therefore short positions are valid with risk being defined. Price action is to be used upon discretion/ management of trade.
Hope this analysis helps!
Thank you for following my work!
And remember,
“Confidence is not "I will profit on this trade." Confidence is "I will be fine if I don't profit from this trade.”
― Yvan Byeajee
