USD/JPY Renewed Its Move To The Downside

After a small breakout above the trendline and a slight expansion of the trend channel it’s clear that the pair has renewed its move to the downside.

In my opinion, the zone around 112.70 – 112.50 is just a temporary stop and a support for the USD. After a breakout below that support we could expect another drop toward the support trend line of the channel.

If we examine the M5 time frame, we can conclude that there will be a correction up to 113.00 – 113.20 at the above-mentioned levels, but even if that correction were to occur it will be only temporary before a renewal of the move to the downside.

The target of this drop is the support trend line of the channel, i.e. around 111.50 – 111.00.
What is more, after a correction at those levels I think there will be another drop toward 110.00 – 109.50.