Hi traders!

Anlysing the USDJPY chart on the 4 hour time frame shows that we are currently at the bottom half of the downtrend channel which is corrective in nature when looked at the daily chart. Price is also trading within the purple box that I have drawn to make analysis much clearer.

I believe that we will continue to trade sideways within this box until price breaks above or below it. Above the box and we can expect price to test the upper trendline of the downtrend channel.

Below the box and we can expect price to trade towards 101.

To your trading victory!

~ Ardy

Forex Blog