My expectation that USD/JPY would continue falling to 109.50 – 109.00 >>> became a reality.
Today alone the pair dropped with over 125 pips (from 110.501 to 109.225) and at the moment it is at 109.35.
The strong support on the weekly time frame, however, is around 108.50 – 108.60, which is less than 100 pips away from the pair’s current level. I think that there’s little doubt that the pair aims to reach that support.
And since after the false breakout the pair returned within the trend channel, it is logical to think that it will continue depreciating, after a correction, of course, toward the support trend line of the channel, which means that the target in the medium term is around 104.00.
In the alternate scenario the pair will reverse around 108.60 – 108.00 and it will renew its rally. I think that scenario is less probable at the moment.
Big drop in fact.
ReplyDeleteLooks like it will keep pushing lower.
ReplyDeleteIt's very bearish indeed.
ReplyDeleteGood post!
ReplyDeleteInteresting to see how this develops.
ReplyDeleteVery useful information! Thanks.
ReplyDeleteLet's see how this pair developed.
ReplyDelete