USD/JPY Bearish Breakout Challenges Key 109 Support Line

USD/JPY

4 hour

The USD/JPY broke below the support trend line (dotted green) but price still needs to break the bottom (green line) before a continuation within C (blue) becomes more likely. In that case a fall towards the Fib targets of wave C could occur whereas a bullish bounce could indicate that price could retrace deeper within wave B (blue) and move higher towards the Fibonacci retracement levels.

1 hour

The USD/JPY seems to be building up bearish momentum as long as price stays below the resistance trend lines (orange). Price needs to break below the support trend line mentioned on the 4 hour chart before a wave 3 continuation becomes more likely.

Chris Svorcik

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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.