USDJPY is retesting the broken long-term downtrend channel
On the Monthly USDJPY chart, we can see that the pair is testing Andrew’s Pitchfork downtrend long-term channel resistance line 108.100-108.500 zone and we need to see a bounce off it. This bounce on retest could lead to an uptrend reversal extension higher. 108 level support must hold for an extension continuation.
On a Weekly chart, we can see a new uptrend Pitchfork channel formed and we had a first bounce of the channel support. We could see now an extension higher to the first channel half median line 122. You can go long with the stop loss below 108.160 to target 114.
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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