USD/JPY Is at a Crossroads, and the Market Couldn’t Pick a Direction Today

From a technical analysis point of view this pair is very interesting and at a first glance it offered an unambiguous solution.

There was a sideways consolidation channel with very well-defined trendlines in blue, which offered a movement of about 70 in the direction of a possible breakout.

In the end of the range there was a triangle (in red), which offered a movement of 68 pips after a breakout, as well as a RSI divergence on the four-hour time frame with an expected limit at around 104.50.

So far none of these signals has had the expected results. The pair did break below the triangle, broke below the sideways consolidation channel, then rebounded to test the triangle support trendline.

We should also not forget that the main trend is to the upside and every move to the downside is a correction.

Soon the market will close and I don’t think that there will be any further development for this week.

Considering the market volatility caused by the US election results in the past week, I think that any further observation and trading of this pair should happen after the start of the new trading week.