USD/JPY: "Three Methods" put new heart into bears
The market has been declining since an “Evening Star” was formed at the last high. Moreover, there’s a “Three Methods” pattern, which led to the more bearish pressure. So, it’s likely that the price is going to falling down until any bullish pattern arrives. As we can see on the Daily chart, all last candles are bearish and we don’t have any reversal pattern so far. Therefore, today’s candle is probably going to be a black one.
We’ve got a “High Wave” and an “Inverted Hammer” at the local low, but they haven’t been confirmed yet. It’s likely to see a bullish correction during the day. If the price faces a resistance on the 21 Moving Average, then it’ll be an opportunity to see a new low shortly.