USDJPY on flat wedge, and crossing of 200 and 50 EMA on 4hr TF

20 Mar 2017

USDJPY's 200 and 50EMA lines have crossed on the 4 hour timeframe indicating confirming that there is a downtrend. In addition to this, if we go down to the 1 hour timeframe we can see that over the past 12 hours, the price movement is forming a flat bottom wedge (similar to the wedge that formed before the FED rate hike and price fell). The flat bottom wedge acts as double confirmation that price is going to be bullish, giving a good opportunity to short USDJPY.