a descending wave is expected shortly
USD/JPY has been moving on a bullish trend since 19th of March 2020; this ascending wave could pump the price more than 26% until 20th of October 2021. From then, the bullish power seems to be decreasing. The bullish trend line is still valid but the slope of the trend looks to be decreasing.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
On GBP/JPY price chart, the price at the moment is on 154.41. The blue line shows the dynamic support line which started forming on 19th of March 2020; this support line is still valid and has not been broken yet. The purple zone above the price line shows a static resistance zone; this zone is considered highly valid, as it has been able to dump the price several times. RSI is almost on 42 and MACD is showing a weak ascending trend on going. Traders can be waiting for the price line to break below the blue trend line and then, on the retest of this area they can enter short positions. the target for the descending phase could be considered on 152.5 and 149.03. Please note that in case the price line breaks above the purple zone, the chance for descending phase to occur would reduce.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.