USD/JPY: “Engulfing" highlights possibility to have new local low
The nearest “Window” acted as a support, so we’ve got bearish patterns here such as an “Engulfing”, a “Doji”, a “Three Black Crows” and a new arrival “High Wave”. However, the last pattern has a quite weak confirmation. Therefore, the market is likely going to reach the 21 Moving Average soon. As we can see on the Daily chart, there’s a “Dark Cloud” pattern, but it hasn’t been confirmed yet, so the pair is likely going to test the closest support line, which could reverse the price movement into an upward direction.
There’s a strong support by the 55 Moving Average, but we still don’t have any bullish pattern so far. At the same time, we’ve got an “Engulfing” and a “Harami” at the last high, so the price is likely going to achieve the nearest support line.