USDJPY is trending at critical levelsUSDJPY (Daily Chart Analysis)
A contraction in the volatility is visible in the uptrend - an ascending wedge pattern is forming - where prices are testing the upper resistance zone
The quantitative analysis
- 3 legs appear in the recent bull phase
- each leg constitutes a rise and then a relatively smaller fall
- the ratio of fall to rise for the first 2 legs is between 68%-70%
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Now we are expecting a similar fall in USDJPY - that will make the ratio of fall to rise near 70%
For this, the prices might test the levels near 157.35
- this level also constitutes the fib ext level 0.786
- also the lower trendline of the ascending wedge
The technical and quantitative analyses both signal a fall in USDJPY
The fundamental factors include intervention of Japanese authorities into the forex market when prices rise substantially higher - these are such levels.
Short