An overview of the
currency markets by 
Greeting FX Streeters,
Let’s look at a currency pair we haven’t analyzed in a while here - the USD/JPY.
EVen though the currency pair appears to be in a down trend, what we’d be looking for at this point is to get into a short term buy to catch a little retracement.
If you look at our trend lines, you can see we’re in a downward channel that’s starting to narrow the further we go. Even though the channel is starting to narrow, this does NOT appear to be an ED since ED’s are very steep.
Right off the bat, there are two outcomes we’re potentially looking at:
1) We’ve seen a temporary low and we’ll see the upward retracement from here, or
2) We’ll see some upward movement to test the upper trend line and then head back down to test the lower trend line before seeing the retracement.
At this point, we’d wait to see what unfolds. Our shorter term analysis says it will move up a bit, head back down (potentially to test the lower trend line) and then head back up again. A good way to see the potential movement would be to see a break and break away from one of the two trend lines.
Good luck and be sure to apply your money management. Remember to take the higher probability trades and not trade just to be in the markets - that is a surefire way to depleting your trading account and that’s something we all need to avoid.
