The price action of the USDJPY recently broke down below the lower limit of a massive Pennant structure, which initiated the beginning of a new downtrend. The price action then broke down below the 23.6 per cent Fibonacci retracement level at 113.011 before going on to consolidate temporarily above the 200-day MA (in orange). This provides bears with an excellent opportunity to sell the USDJPY at the peak of the current pullback.
Their supporting stop-loss orders should not exceed 20 pips above the 23.6 per cent Fibonacci. The first target is the 38.2 per cent Fibonacci at 112.564. The secondary target is the major support level at 111.850, underpinned by the 300-day MA (in purple).
Their supporting stop-loss orders should not exceed 20 pips above the 23.6 per cent Fibonacci. The first target is the 38.2 per cent Fibonacci at 112.564. The secondary target is the major support level at 111.850, underpinned by the 300-day MA (in purple).
