USDJPY Major Forex Pair

The USDJPY major forex pair had been trading upwards for some time but lost momentum after reaching 158.000. Analyzing the price action on the 1-day time frame, we observe a rising wedge pattern, and the loss of momentum is evident on the MACD 4C Indicator, where a bearish divergence is present. On February 5th, the price broke out of the rising wedge pattern with a bearish impulse and also broke the lower high structure.

4-Hour Price Action

When we scale down to the 4-hour time frame, we see that the price action has stalled, and the momentum from the bearish impulse has weakened at a support area. It appears that the price action is forming a 4-hour correction, after which we should anticipate a breakdown to the downside. However, with CPI data being released tomorrow, this could invalidate any trading setup. I'll be keeping a close eye on this situation to see if a solid trading opportunity arises.