USDJPY: ABCD in Progress Towards Key Demand Zone
USDJPY came down strongly after a fake breakout of 112 since last week.
We can clearly see a falling channel is forming since the first wave of bearish movement has ended and as the second wave is still in progress.
In an ABCD pattern, it is important to watch for the break of point C before we can conclude that it is able to form D and that's what's happening now.
So let's wait patiently for the price to complete the ABCD pattern as it enters the key demand zone around the price of 111, sitting on a 4-month rising trendline.
This demand zone is strong also due to the fact that many sellers might have been trapped after the breakout of a falling channel in 11th April.
We can clearly see a falling channel is forming since the first wave of bearish movement has ended and as the second wave is still in progress.
In an ABCD pattern, it is important to watch for the break of point C before we can conclude that it is able to form D and that's what's happening now.
So let's wait patiently for the price to complete the ABCD pattern as it enters the key demand zone around the price of 111, sitting on a 4-month rising trendline.
This demand zone is strong also due to the fact that many sellers might have been trapped after the breakout of a falling channel in 11th April.
