Today on USDJPY – Daily and H4 charts support Short trades.

On the Daily chart above, the downtrend is simply so visible. Since yesterday, after price broke the major Weekly chart swing low that is also visible on the Daily chart as a major support level @ 93.85 (which we’ve highlighted using the blue broken line), price has been in a free fall.

On the H4 chart above, from a day-trade perspective, we are still very much in a nice downtrend: price keeps forming lower highs and lower lows. Downtrend pattern doesn’t get more beautiful than this. The white horizontal line @ 95.44 highlights the most recent swing high – that has been maintained since yesterday – and as long as price stays below it, our downward bias remains intact.

However, we still need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions, and sell a rally in today’s down trend. Price pattern on the hourly must also be forming lower highs and lower lows.
Please NOTE: the most recent hourly swing high has just been broken upward; so, we might have to wait for some time to get the hourly chart to align with our downward move bias – it might take the whole day.