Yesterday we talked about the warnings by the bearish divergence in this pair. Price has now broken through and below the bullish channel and is challenging the lower cloud boundary support at 109.50.
Blue lines - bullish channel (broken)
The USD/JPY pair has broken through the first support level at 110.20 and has entered inside the Ichimoku cloud. Support is at 109.50. At this level we also find the 50% retracement of the entire rise. Price could bounce for a back test of the broken channel. A daily close below 109.50 will be a bearish sign. Bulls still have hopes as long as 109.50 holds.
