FX.co ★ Updated wave analysis on USDJPY for December 23rd, 2022.

Red lines- bearish channel

blue line- bullish divergence

Green line- short-term support

USDJPY is trading around 132.88. As we mentioned in previous posts, USDJPY is most probably at its final wave of the entire downward move that started at 151.96. Technically trend remains bearish as price continues making lower lows and lower highs as it remains inside the bearish channel. Taking a closer look at wave 5, we observe that most probably we are currently at the wave 4 of lesser degree of wave 5. This means that a new downward wave should follow to complete the 5th wave of the 5th wave. Support is shown by the green upward sloping trend line. A break below this trend line will most probably be the confirmation of the start of the final downward move. Possible targets for the end of the entire sequence are at 130.50-129.50. Resistance is at 135.80-135.70 and as long as we trade below this area, we remain bearish.