Minor resistance is casting a hold on the push up on the USDJPY. Seems to be rejecting the minor resistance as the three step wave has been completed at this price of 125.50. We are looking to short from this minor resistance level as a counter trend trade. The only criteria we will be waitng for would be the double top formation on the resistance to go with confirmation shorts.

The bearish pennant wedge has been formed. The resistance prices have been tapped twice and are expected to move down as it has formed a price action bearish divergence. 

No retracement alignment or constituent is present in this line of setup. Therefore, we are only going with the simple setup based on other few technical factors.

EMA 50 has been broken out earlier but was unable to be retested. This retest is our potential take profit level. Overall, the bullish death cross persists between the EMA 50 and EMA 200. 

The bearish divergence is solid on USDJPY. The price is depicting the downfold of the divergence and on the oscillators- RSI and CCI- both are terminally aligned with the bearish trendline, forming a bearish divergence on the oscillators. 

Bearish divergence on USDJPY

Apr 17 2022

Stop Loss -0.72%

Holding time 1d4hr

126.426

Entry price

127.332

Stop loss price