The D1 chart today shows a spinning top candle, which shows a consolidation in the today’s market for USDJPY currency pair. As before, the ADX shows a horizontal movement with shows that trend strength is not strengthening or weakening. The previous FOMC meetings caused this pair to plunge to 118.3 before retracing to 119 and ranging around 119.1 and 118.7. the 80 / 120 / 200 EMA has started to reach the candles which signifies a possible reversal of this pair, although fundamentally, it is unlikely. The previous resistance of 121.8 still holds and the strong support 117.5 and the 116.366 still remains as well. Breakage of these key points will cause a breakout in either direction for the USDJPY.
The H4 Chart shows this drop in the last wave due to the FOMC dovish move. The possible Head & Shoulders formation a few days ago is unlikely to happen now and is seen as largely invalid because a large range occured. This pair is now ranging around the 118.7 and 117.5, with a bias on the bullish wave due to multiple supports at the downside. However, a break in the supports will cause the pair to move even further downwards. the 20 / 50 / 200 EMA is trending in the middle with both 20 / 50 EMA above the 200 EMA, which shows that there is a slight bullish bias as well. The Stochastic Oscillator is hooking upwards while in the middle channel of the indicator and the ADX is trend is becoming weaker and weaker.
The H1 Chart shows this pattern as well. With a range at 119.3 and 2 supports at 118.56 and 118.28. It is now at 118.8 and is thus in the middle of the channel. A short or a buy would not yield a good risk-reward ratio and thus it would be wise to wait until it reaches the ends of either channel for a slight retracement. However, if buyers or sellers are confident of the bullish or bearish long term position, they can enter upon retracement.
Good luck all, always use stop losses and trade wisely!