USD/JPY managed to break out below both support zones I spoke about in my previous assessment of that pair and fell to 110.625, but apparently the next strong support is at that level, because the pair has stalled there for forty hours now.
I do think, however, that USD/JPY could fall even lower, toward 108.80 – 108.50.
In my opinion, there are two most likely scenarios:
The pair will either test and break out below the support at 110.60, or, after it tests this level, it will rebound from it and move to the upside to test the previous support in the zone around 111.60 – 111.90, after which it will move to the downside again.
I also think that it will become clear quite soon which scenario the market will pick.
Good insight.
ReplyDeleteSeems like it remains bearish.
ReplyDeleteGood article, thanks.
ReplyDeleteGood point, will keep it in mind!
ReplyDeleteIt will likely continue falling.
ReplyDeleteBearish continues.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteVery helpful and insightful analysis, excellent.
ReplyDelete