FX.co ★ remington.kihn | USD/JPY

The D1 timeframe chart shows the USDJPY currency pair. Previously, the month of November has ended, and the month before, October, was bullish with a pullback in the middle of the month. The wave structure on this higher timeframe is forming an upward pattern, with the MACD indicator also in the overbought zone and above its signal line. The main argument for growth was the overall position of the US dollar in the market relative to major currencies. It was positioned for strengthening across the board, indicating a higher probability of price increase, which has been happening recently. It's not clear if the move is complete yet; there might be more to come. Looking back at September, we can see an upward breakout pattern forming a descending wedge. After the breakout, there was some growth, followed by a decline to test the breakout pattern, a pullback wave. Subsequently, there was a continuation of the upward trend as expected. In my opinion, the target was the descending line that can be drawn here, which is even more than a weekly one, although it's visible with a smaller chart scale. As seen, the price didn't reach it in October, although it was striving to. There was a pullback down to the support zone around 149.96. From there, an expected rebound occurred, turning into a full-fledged upward wave. Eventually, the price had to reach the mentioned descending line. One could have tried to catch the downward rebound by switching to a lower timeframe and looking for a selling formation there. The same mirror level to turn support into resistance near the line. There was a rebound, but the line was broken. More sellers accumulated near the line, causing a slight pullback, followed by a breakthrough. The price continued to move lower, drowning sellers below the 200 level on the Fibonacci target grid. As seen from history, this pair is capable of moving in one direction for quite a while. A reversal pattern can be observed, an ascending wedge, and bearish divergences on indicators that also dashed sellers' hopes. The price may even reach the maximum seen earlier this year, not far from it. Currently, there has been a pullback upon reaching the 200 level on the Fibonacci target grid, and the price has started a downward correction. I believe there will be a breakout above this year's maximum seen in January. Buyers seem to be gradually gathering strength; it's time to take action.