Monday, April 04, 2016

Downwards USD/JPY Trend Continues

The pair couldn’t climb higher than 113.80 and started falling again.

Under these circumstances it has become obvious that the pair is trying for another breakout below 111.00 – 110.70. In case it does manage to break below that zone, it will continue, I think, towards the next level of support around 109.00 – 108.70.

It is possible that the pair will continue falling below those levels, but that said, I also think that it is approaching a level when the move to the downside will end it will start climbing again. This move to the upside could begin around 108.50, 107.50 or even 104.50 (which coincides with (EMA)89 on the monthly time frame). At this point it is difficult to tell where the pair will start rising, but I am convinced that it will.