USDJPY is inversely correlated to Gold. If gold is going up, USDJPY tends to decline and vice versa. 

USDJPY on a lower time frame is a bullish trend, but on the higher timeframe, it is still bearish. The resistance level of 110.44 holds firmly with strength. Right now, market is forming HH and HL's. At the resistance, we might see a rejection which will continue the downtrend. 

We can observe a bearish wedge pattern formed, but the pair is breaking upwards. The resistance trendline is being pierced. In this case, we will wait for the market to validate the breakout buy. Ahead of the breakout buy, we also have a resistance level, where we are anticipating our sell positions.

The golden area of retracement 75-78.6% perfectly aligns with the resistance. This gives us a more solid confirmation to short. When shorted at the 75 level, we will target the retracement level of 0.

Both the EMA's are bullish being in a bearish death cross. The EMA's have been closely converged at the moment, thats why, we need to wait to see either it continues with the bearish death cross or flips to a bearish one. After the breakout buy of the EMA's, there was no retest. Therefore, an impending retest is due on both the EMA's

Both the oscillators are heading towards their over buying zone. The extended over bought zone will need to be neutrazlied. We may see a bearish divergence being formed on either of the oscillators, which in turn would then push the market down.

Please note once we are in 30-50 pips profits, we need to take partial positions and bring the stop loss to breakeven. 

USDJPY sell from 110.44

Aug 27 2021

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