USDJPY Forecast:

My technical study was a mess yesterday. The “flag” bullish scenario was completely failed as price break below 89.30 area, bottomed at 88.82 but now traded higher at 89.45 at the time I wrote this comment. On my h4 chart below we can see that after breakout above the trendline resistance (aqua), price moved higher but found resistance at 90.40 and now moving lower in a minor bearish channel (red channel) indicating a bearish view or at least a limited bullish scenario after violated the trendline resistance. I think we are in no trading zone now and I will stay away from the market and wait for further development. Important range area to be watched is 90.40 – 88.22.