USDJPY: Descending Channel

USDJPY, H4

On the H4 timeframe, USDJPY moves downwards in a descending channel.

The MFI oscillator shows a bearish divergence with the asset and the Parabolic SAR started to point the dots below the price, potentially indicating a bullish momentum for the USDJPY. This setup gives us further scenarios:

If the price breaks above the 143.50 resistance, it will open the way to 145.50 and further breaching will propel the asset to 149.30;
However, a rebound from the 143.40 may trigger a decline to 141.20 support.

Trading foreign currencies on margin involves significant risks and may not be suitable for everyone, as high leverage can increase both potential gains and losses. Before entering the foreign exchange market, it is essential to evaluate your investment goals, personal experience, and risk tolerance.

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Author: Timur Yurdagyul

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