The USD/JPY pair plunged in the last hours signaling strong sellers and a potential deeper drop. The pair ignored strong downside obstacles, stabilizing under these broken obstacles may announce more decliens.
Fundamentally, the Japanese Trade Balance was reported at -0.44T versus -073T expected. On the other hand, the USD received a hit from the US Unemployment Claims which was reported at 286K far above 227K in the last week. Later, the US is to release the Existing Home Sales which is expected at 6.42M versus 6.46M in the previous reporting period.
USD/JPY Technical Analysis!
Technically, the pair retested the weekly pivot point of 114.49 where it has found strong resistance. Now, it challenges the inside sliding line (sl) of the descending pitchfork. A valid breakdown below it and a new lower low, a bearish closure below 114.02 could signal more declines.
Failing to come back to test and retest the descending pitchfork’s upper median line (uml), USD/JPY signaled strong downside pressure. As long as it stays within the descending pitchfork’s body, the pair could still be attracted by the median line (ml).
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