- USD/JPY trapped between daily support and resistance against a bearish backdrop.
- Monthly chart closed below support which now is expected to act as resistance.
USD/JPY is under pressure across the longer-term time frames and is trending within a weekly channel to the downside.
The following is a top-down analysis of the price action and market structure to help identify where the next trading opportunity would arise from a downside continuation to test the channel's dynamic support.
A bearish monthly close below support leaves a bearish bias on the pair.
The weekly channel shows that the price has stalled at fresh support, resisted by prior structure.
There are a couple of resistance areas for which the price is expected to test, at least to the first area, if not higher up.
However, the less risky trading opportunity would be on a break and restest of current support for a downside continuation, trading with the trend.
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