Today, I have three pairs with the Japanese yen for you. This yen is considered as a safe haven asset, so in theory, it should rise when the sentiment on the market is bearish. This is the case right now as trade tensions between China and the US are increasing. All three setups are pretty similar to each other and the correlation between them is high.
The first one is the CHFJPY pair, which on Monday, broke the crucial long-term support using the bearish gap. The breakout, from a technical point of view, was promoted by the descending triangle pattern. After the breakout, the price rushed to close the gap and created a pennant formation. The pennant encouraged a further slide,which is precisely what happened. The sentiment right now is definitely negative.
AUDJPY is the second one, where also had a gap, which allowed us to break a major support. In this case, the support is dynamic and connects higher lows starting from January. Traders managed to close the gap before immediately starting to sell. As long as we stay below the black line, the bears have a higher chance of success.
Last up is GBPJPY; loved for its volatility. Most recently, the price managed to break the crucial horizontal support at 143.8, which gave us a proper sell signal. The whole slide began at the beginning of May with a very nice false breakout pattern. When you see this, tell me, how can you not love these kinds of setups?