Good day traders! On the 30th of January, I wrote that USD/JPY might be nearing the end of a descending triangle formation within the 110.69 – 112.38 price region.
Price then made a top on the 20th of February and dropped like a stone, taking out the bottom of the descending triangle and my initial target at 104.64.
USD/JPY nearly reached or might still reach a 50% Fib retracement level before support steps in, but I do expect a correction to take hold at any moment.
Ideally, I would like to see a correction that retraces a substantial part of this initial decline followed by a possible lower high before another decline sets in.
My secondary target remains at 99.98 but USD/JPY might even decline deeper towards the 94.83 – 97.65 price region before stronger support steps in.
More updates to follow.
Potential Lower High: 106.70 – 109.00
Targets: 99.98 and 97.65
Until next time, have a great day!