USD/JPY Dominant Uptrend at Risk, Where to From Here?
USD/JPY put in a convincing break under rising support from the beginning of this year, opening the door to a lasting turn lower.
This also followed the emergence of a Bearish Engulfing candlestick, further compounding the argument to the downside.
Now, the 23.6% Fibonacci extension is sitting below as key support at 109.51. Breaking under would expose the 100-day Simple Moving Average which could reinstate the dominant focus to the upside.
Still, there could be room for even more prominent losses until the pair touches the 200-day SMA. At that point, the pair could open the door to resuming gains.
This also followed the emergence of a Bearish Engulfing candlestick, further compounding the argument to the downside.
Now, the 23.6% Fibonacci extension is sitting below as key support at 109.51. Breaking under would expose the 100-day Simple Moving Average which could reinstate the dominant focus to the upside.
Still, there could be room for even more prominent losses until the pair touches the 200-day SMA. At that point, the pair could open the door to resuming gains.