The US dollar has been correcting against the Japanese yen since February 17, forming a descending channel pattern. Now, the pattern can serve as a continuation trigger for a greater
The image below shows the channel as two declining parallel yellow lines. My potential entry level is a the cyan line, which is positioned at 10% of the channel’s width above the upper border. I will set my
I detected this channel using the Channel Pattern Detector indicator and built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.
Update 2021-02-22 9:14 GMT: As the currency pair rallied at the start of the week, the entry line had been breached and a long trade was triggered at 105.610 about 7 hours ago. The
Update 2021-02-22 18:03 GMT: Despite a strong initial rally, this trade quickly went south, hitting the
If you have any questions or comments regarding this descending channel on the USD/JPY chart, please feel free to submit them via the form below.