USDJPY
121.09
Failure to breakout or breakout retracement!
The USDJPY is a major currency its technical overview always effected by the BoJ intervention to weaken the currency to boost its inflation and reducing the deflation worries.
On the Short-Term:
The market successfully broke downward the rising channel, in technical theory, the market sell-off should be accelerated to reach a points equal to the width of the channel (Measured from the breakout point) which means the target @ 116s levels. That level has been hit and the market started a retracement to test the breakout pattern (potentially at 121/122). From that level we would evaluate the market pressures and keep you update about our view on the short-term horizon.
On the Mid-Term:
Generally, the market should activate a mid-term down trend mode targeting the levels of 116-114-112. However, in case the recent retracement failed and the market successfully closed within the rising channel one more time! (Which is probable scenario because of generated buying pressure as shown at the chart!) The market would continue its upward direction till reaching the upper band of that channels @ 125 /127 levels. However, it is still early to judge the chart and the market so we would keep our downward scenario active with decreasing the probability of continuation of the downward breakout!
On a longer-Term View:
On the longer-term view, as long as the market is trading higher than 112/110 levels then we still see higher probability of the USDJPY to reach 125/128 as a main long-term targets as long as all factors of the economic condition with no major change.
Daily Trend: Down
Weekly Trend: UP
| Support | Resistence | |
| Level 1 | 120.00 | 121.50 |
| Level 2 | 118.50 | 122.80 |
| Level 3 | 116.90 | 123.67 |
