Friday, July 20, 2018

The Expected USD/JPY Depreciation To Test The Trend Line Is A Fact

After briefly reaching 113.171 the pair began the expected depreciation to test the trend line it broke out above.
It reached the support level to the downside at 111.40 very quickly. I think the pair may continue the depreciation toward 111.00 but in my opinion there will be a renewal of the upward movement soon so it could test the next resistance in the zone around 113.50 – 114.50, followed by 115.00. After that we may witness a deeper correction to the downside.
In the alternative scenario the pair may continue the correction to the downside with a depreciation to 110.00 – 109.60 before it gathers liquidity to rally toward 114.50.