For Traders

Analytical Reviews

Technical analysis

16.05.202215:44 Forex Analysis & Reviews: Short-term analysis on USDJPY.

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.

USDJPY last week provided us with a bearish reversal signal as price exited the bullish channel and fell from 131 to 127.50. Price has so far retraced 23.6% of the entire rise from 114.50. Price has so far made a lower high, implying more downside should be expected.

Blue lines- bullish channel

Black lines- Fibonacci retracement

Red line- resistance trend line

Resistance is found at 130.15 at the red resistance trend line. As long as price is below this trend line I expect USDJPY to continue lower towards the 38% Fibonacci retracement where we find our first major target. Trend is in a turnaround phase from bullish to bearish. Traders need to be cautious. Support is at recent low at 127.54. Bears need to break below this level in order to hope for a move towards our first major target at the 38% Fibonacci retracement.

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.