Bearish Wave Expectations and Implications
In this analysis, we will focus on the USD/JPY currency pair, specifically examining the price action and the formation of a bullish channel. The price line has recently been moving within this channel, and its final descending leg is approaching the base line. If the base line of the channel is breached, it could indicate a potential bearish wave. We will delve deeper into these dynamics and discuss the implications for the future direction of USD/JPY.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The USD/JPY currency pair has been displaying a bullish channel pattern in recent times. This pattern is characterized by a series of higher highs and higher lows, indicating a generally upward trend. The formation of a channel suggests that buyers have been in control, consistently pushing the price higher within a defined range.Within the bullish channel, the price line has reached the final descending leg and is now approaching the base line. The base line acts as a support level within the channel, providing a floor for price movements. Traders closely monitor this line as it plays a significant role in determining the future direction of the currency pair. If the base line of the bullish channel is breached, it could signal a potential shift in market sentiment and the initiation of a bearish wave. A break below the base line would indicate a weakening of the bullish momentum and potentially attract more selling pressure, leading to a downward move in USD/JPY.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.