by Ani Mazanashvili on October 31, 2018

USDJPY Analysis – growth expected after a short decline

USDJPY is giving a strong buy signal. The price was expected to follow an inverse head and shoulders pattern, but instead, there was a wedge pattern. About a week ago we had a bearish outlook for the currency pair in the short-term. The pattern was promoting a second test of the black line, which we took as a sell-signal for the nearest future. If the price broke the trend line shown in black, a longer-term signal would’ve been triggered.

USDJPY Analysis - growth expected after a short decline

On Friday, the price broke the black line which could’ve been taken as a sell signal, but it turned out to be a false breakout, and the price recovered quickly thereafter. The price started to increase with a typical market movement and even breached the resistance from below. We’re taking this as a positive sign for the price movement and expect more growth to come in the future.

Ani is our assistant content manager. She makes sure that all the articles we write on InsideTrade are clear, concise, and easy to understand for our visitors. Thanks to her experience in the financial markets over the last year, she also reports on interesting stories as well.