Hello traders! Today USD/JPY has approached the downtrend trendline, which might provide some resistance for the price. Considering the previous rejection of the 50 Exponential Moving Average at 104.47, it is possible that the price will spike above this level, before/if the downtrend will take place.
But keeping in mind, that the uptrend trendline has been broken and the previous key resistance eat 104.76 has been rejecting, the probability remains in favor of the downtrend.
To summarise, the current supply zone could be located between 104.30 and 104.50, which certainly will be of interest to sellers. If there won’t be a clear break above this resistance area, USD/JPY MIGTH move down by 100-150 pips throughout this week.
However, daily break and close above 104.47, will immediately invalidate the bearish forecast and the USD/JPY trend is likely to turn bullish. In this scenario, price should be aiming to test the previous resistance area near 105.60
Bias: Strongly bearish while below 104.47
Potential Resistance Zone: 104.30 – 104.50
Potential Targets: 1102.96. 102.86
Have a profitable trading!