FX.co ★ USDJPY analysis for November 4th, 2022.

Red line- channel resistance boundary

USDJPY is on the verge of providing a new bearish signal according to the Ichimoku cloud indicator. As we mentioned in previous posts, resistance at 148.90 remains key and bears are still unable to break above it. Instead, we have witnessed a rejection at the resistance and price rolling over lower. Although price remains inside the medium-term bullish channel, using the Ichimoku cloud indicator in the 4 hour chart we observe price close to breaking below the Kumo (cloud). Price is trading below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). The Chikou span (black line indicator) is also breaking below the candlestick pattern. All signs point to a short-term trend reversal, implying that USDJPY is vulnerable to a move towards 140.