USD/JPY Is About To Reach The Support Trend Line Of The Channel

The Easter holiday is about to begin and with it the markets are winding down.

Despite that you can see that there is very little left (about 40-50 pips) until USD/JPY touches the support trend line of the channel.

That will happen either today after the beginning of the American session, or on Monday – I doubt there’s a trader who questions whether that will happen.

All that is left to do is to watch what the pair will do once it does touch the trend line – how large the rebound will be and whether there will be one or more new lows after that. Also, whether the pair will break out below the trend channel or will it reverse and move upward. Either way, we need to be very careful when opening new positions once the pair reaches the trend line.