Today on USDJPY – Daily and H4 charts support Short trades, but…

On the Daily chart above, as stated in one of the previous analyses on the USDJPY pair, there’s a possibility that, with the current bearish move that started over two weeks ago, we are seeing the early stage of an overall bearish trend continuation. Price is currently making a lower-high-lower-low formation, which is partially captured within a “quasi” downward or bearish channel, and it’s one of the strongest signals confirming the bears’ reign.
However, we would observe price is currently around the lower edge of the bearish channel, hence there’s a possibility we might experience a bullish retracement on this currency pair soon. Buttressing a possible bullish retracement is price’s inability to break below the previous trading day’s low – Friday’s low @ 89.77 (not highlighted).
From a day-trade perspective, our bias is still bearish, but that position is threatened by recent price actions. To be on the safe side, especially for more conservative traders, it’s better to wait for a clearer coast before trading this pair.

On the H4 chart above, price is yet to break below the most recent swing low @ 89.80 (which we’ve highlighted using the blue broken line): a sign telling us the bears might be losing control. Also, we would observe that the most recent swing low @ 89.80 was formed only a few pips above the previous most recent swing low – also Friday’s low @ 89.77 (pointed out with the yellow arrow), forming a “double-bottom” reversal pattern in the process. These are all signs indicating all isn’t well with the bears at the moment.
As alluded to on the Daily chart, until the 89.77 support is broken, the case for a bearish move is weak – though our bias is still bearish. The white horizontal line @ 90.56 highlights the most recent swing high, and as long as price stays below it – in the absence of any new and lower swing high – our bearish or downward bias remains intact.

However, if we eventually have a clearer coast, we still need our Hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our Short positions. Price pattern on the Hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.