In our last analysis in USDJPY we noted the short-term triangle pattern in play. Today price is breaking down below the lower triangle boundary. This is a bearish sign. From our past analysis we have mentioned many times that we remain bearish in USDJPY expecting a move towards 103.
Black lines -triangle pattern
USDJPY remains inside the red downward sloping bearish channel. We remain bearish as long as price is below 105.50 and inside the red channel. Our target remains at 103 and we believe we are going to see this level or even lower this week. A daily close below 103.60 will increase chances of seeing 103 or lower this week. Resistance is at 104.30. Breaking above it seems very difficult now, but if it happens, we should expect price to challenge the upper channel boundary near 105-105.50.
