USDJPY has broken down from its local flag pattern and could head lower in the short-term. However, at the moment it has bounced from the bottom of its main channel. Thus, we have 2 highly probable setups:
1. Price retests the previous (dotted) trendline and fails, bouncing back down and then breaking the yellow flag pattern
2. Price breaks the yellow flag pattern and heads towards a former trendline support level.
Enter trades upon breakout confirmation, otherwise trade is invalid.
1. Price retests the previous (dotted) trendline and fails, bouncing back down and then breaking the yellow flag pattern
2. Price breaks the yellow flag pattern and heads towards a former trendline support level.
Enter trades upon breakout confirmation, otherwise trade is invalid.
