FX.co ★ USD/JPY analysis for January 08, 2020 - Massive shakeout in the background and completion of the downward ABC, watch for buying opportutniies

USD/JPY got strong shakeout (strong reversal) after the test of the support at 107.70. According to the daily time-frame, I found wide range reversal candle and potential end of the ABC downward correction.

My advice is to watch for buying opportunities on the dips with the main target at 109.65.

MACD oscillator is showing decreasing in the downside power and slow line is flat.

Resistance level is seen at the price of 108.85 and 109.65

Major support level is set at the price of 107.70