USD/JPY Is Bearish Despite My Expectations For A Rally

Despite my expectations for a USD/JPY rally, it seems that the pair will continue falling. I am not sure how certain that is from a technical analysis point of view and how much of an effect the Trump administration behavior has on it, but for the moment the USD weakness appears to be a fact.

The pair returned within the trend channel it had broken out above and if it breaks out below the support at 110.20 I think it will start falling to 109.50 – 109.00.

The true move to the downside for this pair, however, will begin if it breaks out below that zone as well.

That is a medium-term perspective, which could give the pair a push for three more waves to the downside, since from 118.66 to 108.128 there are three A-B-C waves.

In the alternate scenario the pair will stop falling above 109.00 and it will renew its rally.