USDJPY Bearish Flag Pattern Is Likely to Create a Market Reversal

USDJPY Market Analysis – February 24

USDJPY bearish flag pattern is likely to cause a reversal in the ascending channel. In recent times, the USDJPY has formed multiple bearish flags, which has led to a reversal in the market. A significant channel has formed in the daily time frame. The bulls have ascended steadily with the aid of the channel—the bearish channel formed during October into early November. A breakout led to bullishness within the channel. On the 19th of November, USDJPY created a retest on the bearish flag. The retest supported the market’s rise into the upper border of the major channel.

USDJPY Major Levels

Resistance Levels: 116.080, 110.780
Support Levels: 113.580, 109.080

USDJPY Long Term Trend: Bullish

The bears gained control of the market with the aid of the upper border of the ascending channel. The market plunged straight to test the ascending trend line on the daily chart. On November 30th last year, the market tested the trend line. There was a sharp rejection upon reaching the trend line. A long wick was formed beneath the large bearish candle. The Stochastic revealed that the market was oversold. The market price pumped afterwards, like a retest of the previous bearish flag pattern.

USDJPY formed a bearish flag pattern within the channel in February. The bearish flag pattern caused the market to dive into the demand zone at 113.580. A breakout of the bearish flag pattern occurred on the 27th of January this year. The stochastic had already signified that the market was already oversold. The bearish flag pattern was retested on February 2nd, early this year. This led to bullishness in the market till the price reached the supply zone at 116.080.

USDJPY Short Term Trend: Bearish

The market has formed a new bearish flag pattern. Rejection has been spotted with a wick upon reaching the ascending channel border. The candlestick formed the wick at the confluence of the bearish flag’s crossing with the ascending channel’s lower border. The Stochastic is currently oversold. This is likely to cause a breakout and retest of the bearish flag pattern. The USDJPY bearish flag pattern is expected to cause a reversal, leading the market to 116.080.

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