The USDJPY is currently in a downtrend and busy with a correction wave.The price bounced off a weekly support level and might be heading for a potential weekly resistance level of around 150.055.
There might be some more upward potential, but the weekly resistance could encourage sellers to enter the market with a possible new impulse wave resulting.
The H4 chart provides more details and currently, an uptrend is in progress with the price converging on the 50 Exponential Moving Average.By adding a Simple Moving Average to the price, the simplified structure of the market can be seen inside the candles, which represent the complete structure of the market.The wave action produces higher tops and bottoms in the uptrend.
The Moving Average Convergence Divergence (MACD) confirms the longer-term downward price cycle but the H4 market structure has yet to change, hence the potential for more upward momentum until the weekly resistance level is reached.
By using the fractal nature of the market structure (patterns within patterns), the lower time frames can give further hints for possible opportunities to the upside until the weekly resistance level is reached.Then patience will be needed to see how the market reacts before more scenarios can be considered.
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