USDJPY Higher Time Frame Analysis

13 thg 7Japanese Yen collapse continues with its lowest closing price in 34 years. If it falls through 160, it will be the lowest level against the U.S. Dollar since the 1980s. It can get even worse. Let's look at some charts:

1. We are currently sitting at 160 resistance level where a W FCP pattern is completed which can give us a correction. This is the last level which is preventing the USDJPY from slingshotting upwards.

2. A CUP formation is happening at the moment (rounding bottom). So if the correction comes at the current levels, that can make this a Cup and Handle pattern.

3. If the correction does not occur or we get a shallow one, these current levels can become a new support which can push USDJPY higher once confirmed.

4. There are several gaps left in 1980s. I posted about these gaps in my previous post approximately 7 months ago, indicating that USDJPY would be bullish.

5. These are the levels where in the long run USDJPY can go to complete a big W pattern.

This can have a huge impact on the #dollar index (DXY) too.

I recently did a premium analysis report on USDJPY and DXY (dollar index) for a client which has a more in-depth analysis and potential target zones/levels. Get in touch with me via DM if you want to order a copy of that report.

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