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USD/JPY slips in new channel down

FX_IDC:USDJPY   U.S. Dollar / Japanese Yen
USD/JPY slips in new channel down

As it was expected, different news coming from the United States and Asia created a downside momentum that allowed traders with bearish outlook to push the currency pair down to the 113.65 level. The further deprecation of the buck was stopped by a slope consisting from October 16 and October 31 minimums. An existence of this support barrier as well as President Trump’s arrival to China suggests that the currency rate might resume the surge despite the pressure from 200-, 100- and 55-hour SMAs.

On the other hand, over the last two days the pair has formed a minor descending channel , which implies that the above moving averages should be strong enough to force the rate to make a rebound from the upper boundary of that pattern.
Comment: USD/JPY plunges amid BoJ Summary of Opinions release

A release of the Bank of Japan Summary of Opinions as well as ongoing concerns over delay of the Trump’s tax reform implementation continued to push the exchange rate in southern direction. In technical terms, this downward movement is expressed in one-week long descending channel, which consist of three reaction highs and lows.

As in early morning the pair made a rebound from an upper trend-line of the pattern, the rest of the day it is expected to spend either in a red zone or in consolidation. This assumption is supported by the fact that the northern side accumulated all active barriers, such as the 55-, 100- and 200-hour SMAs plus the weekly PP. Moreover, the closest support area is supposedly located only near the 113.40 mark.

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