USDJPY: Bottom of Channel Up. Time to decide.

Dec 4, 2023

USDJPY is trading inside a Channel Up since the start of the year, with the 1D technical outlook just turning red (RSI = 40.803, MACD = -0.760, ADX = 32.756) as the price reached its bottom under the 1D MA100. The 1D RSI shows a rounded bottom, as it did on March 24th, so it is an optimal level to buy and target the R1 level (TP = 152.000).

Since though the November 13th top and rejection happaned on that R1 level itself, it is not impossible to see the Channel Up finally break and start a long term correction. Consequently if the price crosses under the dotted trendline, we will target the 1D MA200 initially (TP1 = 143.050) and following a relief rebound, eventually aim for the S1 level (TP2 = 138.085).

See how our prior idea has worked:

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