A simple and clean technical analysis snapshot for the Japanese Yen vs US DollarUSDJPY is still in Short after crossing down a bullish channel shown in the price chart image and the technical analysis video belowThe crossing down triggers a bear flag, on the daily timeframe. This simple technical analysis formation tends to work not because of some voodoo technical analysis magic,but because there are enough participants in the market that anticipate for it to work.Bullish channels are positive-sloped continuation patterns. If prices break the top channel line, the bullish trend continues. Traders can withdraw their long position and build a short position if prices break the lower channel line, thus, the bull channels are also a type of a bear flagNote also that by “tends to work”, it implies that technical analysis is not guaranteed to work, and may not work. But it should increase the probability for a trader to win, as more “voters” in the market set up their votes in the endless voting mechanism of the market, and the endless game between bulls and bears.
