USD/JPY- Broken Its Downward Channel
The USD/JPY pair is trading in a downward channel pattern on a 4 hour time frame. This confirms that the trend is skewed towards the downside. Moreover, the price is also trading below the 50 (shown in yellow) and 100 day (shown in red) moving averages and this further confirms the earlier statement as these averages are also used to confirm the direction of the trend. The readings for the 50 day MA is 112.56 and the 100 day 112.36 and the pair is trading is at 110.59 at the time of writing this article.
The RSI and the MACD are also in oversold zones with readings of 23.52 and -0.45 respectively. The price is trading in the direction of the RSI and this confirms that the current price has momentum behind it.
By Naeem Aslam