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USDJPY Could Move Higher But Patience Is A Virtue

FX:USDJPY   U.S. Dollar / Japanese Yen
Looking at USDJPY , you can see what appears to be a very clear downtrend alongside a 200-DMA (currently at 109.20), Ichimoku Cloud , and Andrew’s Pitchfork (purple).

The impressive move higher is still taking place within a larger downtrend, which the various indicators on the chart above show you. Of the three indicators, Ichimoku Cloud would be one of the first to register a Bullish signal on a break and close above 105.20 (the lower flag). The next breakout of a long-term indicator would be a daily break and close above the 200-DMA (currently at 109.20), which you can see in the chart below has provided a good bias for longer-term trends.

Lastly, the Andrew’s Pitchfork (purple) would not concede that Bear Run is likely over until a break above the upper parallel line that aligns nicely with the 38.2% retracement of the 12-Month Range at 109.20 (the higher flag).

One more thing, the down move since last Sept has been seen with a slightly up-trending RSI . An RSI which is trending higher while a pair is trending lower often signals a reversal, it's the timing which is the difficult part.

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Great analysis!
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