SpaceBlobb

USD/JPY Trade Setup, Showing Bearish signs + harmonic forming!

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FX_IDC:USDJPY   美元/日元
So USD/JPY is looking pretty weak atm after it has been rallying upwards for a couple months. As you can see USD/JPY retraced onto the .618 retrace and moved up from there and formed a rising channel + a double top which are two bearish signs. During this whole upwards movement the chart was making higher highs and higher lows however, the RSI and MACD have been forming lower highs for over 90 days on the daily timeframe thus indicating an end to the bullish trend. There is also a bullish shark forming on the daily timeframe which would be a great exit and long entry if you decide to short this. USD/JPY just broke down out of the rising channel and is currently retesting the support of the channel as resistance and this would be a really good entry. However if you want more confirmation, it would be safer to enter once point (B) breaks of the harmonic at around 107.4 and form a lower low. Target would be at point (D) as mentioned before. Don't forget to follow for more free trade setups! Good Luck traders!

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