FX.co ★ remington.kihn | USD/JPY

Hello traders . Let's analyze the trading instrument - USD/JPY. Daily timeframe. Price has exited the bullish trend by breaking below the support level of the trend channel and further breaking below the short zone level - 154.699. Price returned to this zone seemingly in a long position, where there was previously a short gap. It's interesting to see if the price can approach that level again, as prices tend to fill the gap in the opposite direction. However, the price closed above this zone with a full candle without shadows on the daily chart, which is intriguing because logically the price could move higher with such a daily close. But since the price has already shown the culmination of the bullish movement, now the price can mostly move with greater force in a short direction.

Hourly timeframe. In my opinion, the price is not ready to continue in a long position, there is no accumulation for breaking above the zone 154.699, only a price approach to this zone. This means the situation is not very clear, so ideally there should be an additional test to confirm the price above and for it to move long. However, since globally the price has shown the culmination of the long and a low update, now the price is set, in my subjective view, mostly for a short position. Therefore, I don't really believe in a long movement, but a continuation of the short is more likely.