Bearish USD/JPY Is Preparing for Another Downturn

In this technical analysis I will cover USD/JPY and explain the most important pieces of information on the chart.

First of all, especially in Forex, trading with the trend is very important. If we zoom out a bit, we can see an overall bearish momentum on USDJPY.

Also, we can see a pattern forming similar to a symmetrical triangle. I expect the price to continue upwards for a little bit until it finds resistance and then move strongly downwards again.

I highlighted the important point here with the red breakout circle. If the price goes below this point I believe the downtrend is confirmed and a short trade is appropriate.

As for an exit on such a short trade, we can make use of the horizontal support area around the 104.2 level. This will be a difficult level to break and we can already earn about 150 pips holding it from the breakout zone.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!