USDJPY is testing the downside resistance of a long-term Pitchfork channel
On the Quarterly USDJPY chart, we can see that the pair is going for a test of the downside Andrew’s Pitchfork channel resistance line 102.800. A break BELOW this resistance will mean a shift in the long-term uptrend. It will certainly lead to a test of 100 level for a huge downside fall.
On a Weekly chart, we can see that the USDJPY price action is moving inside the new downtrend Pitchfork channel. A break below will be perfect for the short trade entries. You could open a good RR short trade entry upon a break below 102.800 with the stop loss just above 103.600 to target lower on a continuation to 100 long-term downside resistance near-term. Only a break above 105 will lead to a downside continuation invalidation.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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