USD/JPY Giant Roof Pattern On H4 Time Frame

The USD/JPY has formed a giant roof pattern on H4 time frame indicating it that we might see a huge drop if the pair breaks and makes a 4h daily close below the bottom (108.72). 108.80-72 is the final support for the low of the roof pattern and the break below it should target W L3 108.50, WL4/ML4 107.90 and W L5 106.89. M L5 – 105.89 should be reached only if the daily candle closes below 106.80. A failure to break roof’s low might lead to a rally and we might see a retracement towards the POC 109.82-110.00 (W H3, ATR high, order block) and eventually POC2 W 110.30-50 (W H3, EMA89) where we could see a rejection towards the roof’s low that would retest it. So, pay attention to POC zones for potential rejections and above mention targets if the roof pattern breaks.

W L3 – Weekly Camarilla Pivot (Weekly Interim Support)

W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)

M H4 – Monthly Camarilla Pivot (Very Strong Monthly Resistance)

M L3 – Monthly Camarilla Pivot (Monthly Support)

M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)

Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets