For Traders

Analytical Reviews

Trend line

27.10.202017:43 Forex Analysis & Reviews: USDJPY challenges major support

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

We have been bearish since mid October in USDJPY since it was trading around 105.50. Since then price got rejected and fell around 100 pips towards support area of 104.50-104.30. So far price has bounced twice from this support level. The next couple of sessions are very important for the short-term trend at least.

Red line- resistance

Green line - support

As long as price is below the red downward sloping resistance trend line we remain bearish. If support at 104.30-104.50 fails to hold we should expect USDJPY to challenge 102.50-102 lows. The descending triangle pattern with the lower highs is a weakness sign. However for more downside to be achieved, price should not form higher lows in the RSI, as this is a sign of weak selling. Despite making lower lows USDJPY bears need to break through the support decisively. A daily close below 104.25 and staying below this level will be the key for a move towards 102. If support holds, we should expect price to bounce towards 105-105.35.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.