- The USDJPY currency pair has been moving in an upward trend since May this year. The quotations took the shape of an upward channel. Yesterday, the price established the maximum of this year beating the previous peak by 10p.
- The price reached the resistance of the upward channel
- repeated sequence of downward waves
- Breakout from inside bar bodes downwards
Analyzing the price behavior within the mentioned upward channel, I noticed an interesting sequence of repeating downward waves. They are triggered by breakouts from inside and outside bar formations. If history is to repeat itself, we can expect declines on this pair.
The conditions for the start of the correction are met, the price broke out of the inside bar, MACD formed a maximum and is falling creating a bearish divergence. Once again, the supply target may be the channel support.
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