USDJPY technical analysis (with video explanation)

A simple and clean technical analysis snapshot for the Japanese Yen vs US Dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term

• USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term is still in Short after crossing down a bullish channel shown in the price chart image and the technical analysis video below
• The crossing down triggers a bear flag, on the daily timeframe. This simple technical analysis formation tends to work not because of some voodoo technical analysis magic,but because there are enough participants in the market that anticipate for it to work.
• Bullish channels are positive-sloped continuation patterns. If prices break the top channel line, the bullish trend continues. Traders can withdraw their long position and build a short position if prices break the lower channel line, thus, the bull channels are also a type of a bear flag
• Note also that by “tends to work”, it implies that technical analysis is not guaranteed to work, and may not work. But it should increase the probability for a trader to win, as more “voters” in the market set up their votes in the endless voting mechanism of the market, and the endless game between bulls and bears.

Technically, when will the JPYUSD stop being bearish?

The Japanese Yen is heavy to start the week and If JPYUSD re-enters the channel shown in the chart below, and closes a daily candle within it, then the bearish case is over and a new bullish premise may take stage, depending on the price action. For those seeking increased confirmation for JPYUSD back to a possible buy, the daily candle needs to close above 133.562, which is the high of 01 Aug, 2022.

USDJPY technical analysis video

There are stronger technical analysis formations than others, which means that people believe they should work more than others,and on time frames that are more reliable than hours (for example, the daily timeframe is more reliable than the 5 minute one). Price crossing down a channel is a relatively reliable pattern and the following video shows the details for this case relating to the USD vs the Japanese Yen.

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