Hi guys, USD/JPY has been in a downtrend as you can see the blue lines from the weekly time frame. Now the market reached the top of the weekly channel and monthly major resistance. The price hit this level twice before in the recent times and each time made a lower low. Also on daily time frame there is a wide bearish divergence and on 4 H a rising wedge has formed. Now we are waiting for the break of the wedge and a pull back at a minor resistance level for a good entry short. Another huge confluence factor is that on monthly we have this doji candle rejecting the level and also the 14 EMA crossed bellow the 50 EMA on monthly for the first time since 2013. Let me know what you think about this trade in the comment section. Keep it profitable!
Yellow: Monthly level
Blue: Weekly channel
Red: 4H Rising Wedge
Purple: RSI Divergence
Yellow: Monthly level
Blue: Weekly channel
Red: 4H Rising Wedge
Purple: RSI Divergence