The USD/JPY currency pair, on the D1 time-frame, began an upward move in the beginning of January that lasted until the beginning of March when a top was recorded at 112.138. The bears found prices attractive at that levels and supply overcame demand. The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator piercing through the zero baseline, both confirming a possible technical reversal in the making. This was further reinforced by a lower top that formed on 15 March and two subsequent strong bearish candles that occurred after the lower top, indicating that buyers were not able to sustain the upward momentum.
A possible critical support level formed when a low was recorded at 109.740 on the 22nd of March. The bulls are currently trying to push prices higher but should encounter resistance near or at the 15 and 34 Simple Moving Averages that are located at 111.012.
If the USD/JPY breaks through the critical support level at 109.740, three possible price targets may be projected from there.
Attaching the Fibonacci tool to the bottom of the possible reversal at 109.740 and dragging it to the top of possible resistance at 111.012, the following targets may be calculated. The first target can be estimated at 108.953 (161 %). The second price target can be expected at 107.681 (261.8%) and the third and final target may be anticipated at 105.623 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/JPY currency pair on the D1 time-frame will remain bearish.
A possible critical support level formed when a low was recorded at 109.740 on the 22nd of March. The bulls are currently trying to push prices higher but should encounter resistance near or at the 15 and 34 Simple Moving Averages that are located at 111.012.
If the USD/JPY breaks through the critical support level at 109.740, three possible price targets may be projected from there.
Attaching the Fibonacci tool to the bottom of the possible reversal at 109.740 and dragging it to the top of possible resistance at 111.012, the following targets may be calculated. The first target can be estimated at 108.953 (161 %). The second price target can be expected at 107.681 (261.8%) and the third and final target may be anticipated at 105.623 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/JPY currency pair on the D1 time-frame will remain bearish.