USDJPY – Downside potential remains

23.12.2022

Daily: the pair has already closed the second bar outside the lower Bollinger envelope, which is a harbinger of an upward reversal. As a rule, there are no more than two or three such bars.

H4: Here we see the potential for the quotes decrease down to the level of 129.23 (low Bollinger line).

H1: the most probable intraday scenario is the consolidation in the 131.59-132.53 range (Bollinger envelope size).

Scenarios:

Main – flat in the 131.59-132.53 range.
Alternative – decrease to 131.00.
Recommendations: Sell from 132.53 to 131.59.