Last month we sent out an analysis on the USDJPY price action. We also spoke about how its fundamental news also assisted the pair performance for past weeks. https://fxsits.com/usdjpy-price-plummets/ . Since then the pair has moved 60 pips bearish. Resuming its long term trend. We’ve kept our eye on this price action for a while now.
Looking at the H4 time frame, we see that level 105.337 has been acting as support for some time. This is before price broke past it to continue its bearish trend. Level 105.173 also acting as both support/resistance level for the pair. In the chart we see how the USDJPY price action breaks past the level and retraces back to the level 105.173 .Note that price struggled to break past this level. Looking at the daily time frame we see how price is now trading at the 104.702 . If price holds below current price level then we could see level 104.196 being exposed. And if price manages to break this level then level 102.445 will be our next target.
The Japanese economy is slowly picking up from the global crisis that every economy faces. As we move towards the end of the year while the dollar is showing some weakness. In the long term we predict that the dollar will depreciate more than the yen making it a bargain for the long term bearish trend.For more information on entries and exits join our smart signals plans
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