Its been a while since we last wrote about the USDJPY . We lastly sent out an analysis of the pair in September. Here’s a link to the previous post (https://fxsits.com/the-usdjpy-price-action-signals-short-move/). Up until now the pair has performed well. Fortunately our VIP traders received good signals about this movement. The USDJPY price pattern has signaled a bearish movement due to the weakening of the dollar price.
Looking at both H4 and daily charts you will notice how price has been moving bearishly for the past months. On the H4 chart we see price trade at 103.862 below the resistance and support level 104.196.If price continues to move bearish below the resistance level 104.196. This will leave level 103.176 will be exposed. This level could be our next support area.
However, if we see the USDJPY price pattern resist, move bearish and retrace bullish. Then level 104.196 could be exposed. Thus if price moves past resistance level and manages to hold above 104.196. This will leave level 105.221 which is the next strong resistance level exposed.
Our analysts predict that possibilities of a strong bearish price action are still intact for this pair. We see on a long term the devaluation of the dollar. This is due to the continuous stimulus package that the federal government keeps giving out to citizen. For now we can only be patient and watch what price action tells us.
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