USDJPY Ascending Channel Breakout Sell

The USDJPY has been trading within an ascending channel since mid-March. The channel is currently sloping upwards, but there are signs that it may be breaking down. The price has reached the upper end of the channel multiple times in recent weeks, but has been unable to break through. This suggests that selling pressure is building.

The USDJPY has been trading within an ascending channel since mid-March to August 2023. The channel is currently sloping upwards, but there are signs that it may be breaking down. The price has reached the upper end of the channel multiple times in recent weeks, but has been unable to break through. This suggests that selling pressure is building.

The previous impulse in the USDJPY finished before the channel began. This suggests that the current uptrend may be coming to an end. A breakdown below the ascending channel would confirm this and could lead to a further decline in the price.
Entry: Short at the upper end of the ascending channel, with a stop loss above the channel.
Target: The first target is the lower end of the channel.
Risk/Reward: The risk/reward ratio is favorable, as the potential profit is greater than the potential loss.

Here are some other factors to consider when making your trade:

The strength of the US dollar. The USDJPY is closely correlated with the US dollar, so a strong dollar will support the price of USDJPY.
The interest rate differential between the US and Japan. The US interest rate is currently higher than the Japanese interest rate, which makes the USDJPY more attractive to investors.
The economic outlook for the US and Japan. If the US economy is doing better than the Japanese economy, it will support the USDJPY.

It is important to remember that trading is a risky activity, and you should always do your own research before making any trades.