Friday, August 10, 2018

The USD/JPY Depreciation Continues Toward The Support Zone At 110.20 – 110.00

The pair continues moving slowly and correctively within an unbroken trend channel toward its first target to the downside, which is the support zone at 110.20 – 110.00.


I think that despite the slow and very hesitant move south the depreciation may reach 109.60 – 109.40. That is the zone within which the USD could find strong support and from there it could renew its upward trend.


The alternative scenario in case there is a breakout below that support is for the pair to continue depreciation. For the moment that scenario appears less probable, not to mention that the USD remains exceptionally strong against all other currencies – so much so that its weakness against the JPY causes confusion.

For the moment we can expect the depreciation of the USD to the first support at 110.20 – 110.00.


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