USDJPY: Sell Opportunity with Trend Reversal Signal

The market forms a bearish divergence, which gives us a trend reversal signal. The market looks overbought, and the trend reversal signal gives more power to sellers. RSI confirms the price reversal. MACD lines and histogram confirm a downward movement. DMI confirms a bullish trend, but ADX line falls. It tells us that buyers are not so active, and we can sell.

In order to get additional signals confirming the downward movement, we should use the key uptrend line and the support zone. If the price breaks the local uptrend line, it will be a bearish signal with the target at the support zone between 109.800 and 109.715 levels.

If the price breaks below the support zone, the next target for sellers will be at SMA100 and SMA200.

The market gives us a sell opportunity, which we can use the following two breakout signals. All trades must have the exact stop-loss and take-profit levels. The trades must be planned before opening sell positions.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.