Two days ago we mentioned in our USDJPY analysis that traders should expect a bounce towards 105 and 105.40. Today price reached this target and we explain why it is possible to see a bearish reversal from current levels.
Black lines - Fibonacci retracement levels
USDJPY has reached the 61.8% Fibonacci retracement and our second target. Our bullish view was given 100 pips lower. Now bulls face the first important resistance level. This is where we find the 61.8% Fibonacci retracement level and previous lows that are now resistance. A rejection and reversal from current levels is highly probable. So far we have no such indication. The bounce could continue a bit higher towards the pink long-term resistance trend line.Bulls now need to be cautious.
