USDJPY – moved in the growth channel from mid-July this year.
Last Friday the support of this channel was broken, but the price did not diverge significantly and still remains in a small 20p consolidation. The dynamics of recent declines and the fact that the MACD on the Daily and H4 charts is declining suggests that a break out of this consolidation may occur and continuation of declines initiated at the end of last week. The first target may be the 112.10 demand zone.

USDJPY H4 – price is trying to leave the growth channel

When planning a sell order, we need to analyze the graph at the lower interval to determine the potential Take Profit, Stop Loss and the place to enter the market.
The green zone defeated on Friday worked 5 times as support earlier and now most likely it can become a local resistance, which is why the SL level should be above it.

It is also worth paying attention to the average EMA144, it was respected at H1 as a dynamic support for the price and after it has been defeated, twice as resistance. Perhaps it will be a good place in its area for our sell order, and even better if the green zone and the aforementioned average created a confluence of resistances or simply have crossed.

USDJPY H1 – the EMA144 was a dynamic support/resistance level

As far as TP is concerned, the first one may be the level 112.10 resulting from the H4 chart, and the next 111.70 from the H1 chart. The closer to the green zone we enter the sell order, the better the risk/reward ratio will be.

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