As you can see we followed Path A beautifully and also broke the support to carry down all the way to the bottom support I crated for us. Not I expect a retested before continuation down.
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Monthly: Monthly has picked up lots of bearish momentum. I will not be surprised if we close monthly by filling the wicks on the lower side but of course it hasn’t closed and we have no indication just yet. We will have to drop down to the lower timeframes.
Weekly: USDJPY after consolidation has broken downwards, we have broken through a support and now looking to carry down towards the lower green like which will confluence with the broken trendline. We most likely will be looking for a bounce off the consolidation area or bounce off the support which has confluence with the broken trendline for a retest.
Daily: Here you can see that we respected the bullish flag trendline (forgot to draw, but connect the previous lower highs), was a 3rd touch then dropped. As we are approaching a very strong support I can expect for us to bounce off support and get a retest before continuing down lower to the next zone.
H4: We are at a strong zone, to me price looks very oversold and exhausted, but we will have to wait for markets to open. I will look for possible buys to go look for a retest then take shorts to the next lower zone to fill monthly wick.
Overall USDJPY Analysis
I said last week either Gold or USDJPY was lying, and as you can see in the charts UJ was lying. Now we wait for a retest before further continuation lower to the monthly possible wick fill.
I see A as most likely target, but of course you have to think both ways. Now all the explanation was given above on why I see this. Be patient and take trades according to your risk management.