USDJPY – Decline may continue

20.01.2023

Daily: a sharp pullback of the quotations down from the middle Bollinger band might indicate the possible readiness of the bears to continue the downward trend. This is also supported by the breakdown of the lower Bollinger envelope.

H4: horizontal orientation of the Bollinger envelopes, without trend activity from the ADX indicator, most likely, points to the continuation of the consolidation trend in the area of the middle Bollinger band.

H1: also a flat forecast can be made on the basis of the lack of trending potential within the day. Probable trading range is 127.92-128.98.

Conclusions: growth in the area of 128.78-129.00, then decrease towards 127.92.

Recommendations: Sell from the 128.78-129.00 zone to 127.92.