USDJPY Analysis: Possible Bullish Reversal

USD\JPY Analysis Wedge Pattern Reversal

As easily seen in the daily and 4-hour charts, the USD\JPY has been inside a very strong and continuous down trend. Several descending triangles patterns appeared at this pair and caused further bearish movements.

However, in the daily chart there are several signs that may indicate the ending of this bearish movement and the beginning of an uptrend in this pair: First of all, a Wedge pattern recently appeared at this chart. This is a classic reversal pattern that indicates a reversal in the trend. Despite that it is a strong pattern I wouldn't normally give it such weight in my analysis, as the trend is clearly very strong. However, we can also see a very strong support level at 88.0 which is also present in the Weekly chart. This level has a very good potential of pushing prices higher. We also see that price has recently stopped on this level - in a visual presentation which can create the Double Bottom chart pattern - a very strong reversal patterns.

This scenario will be activated if price reaches 88.0 and reverses. If it breaks 88.0 downwards, I will still be bearish on this pair.