After reaching our 106 target, USDJPY has moved marginally higher but is now challenging important trend line support. Price is now challenging the support trend line that was respected all the way up from 102.60 to 106.
Black lines- Fibonacci retracement levels
Blue rectangle - pull back target
USDJPY is challenging important short-term support. Breaking below the blue trend line will open the way for a deeper pull back towards the 61.8% Fibonacci retracement area at 104. Price continues making higher highs and higher lows but taking into consideration that our target has been achieved and the RSI is showing bearish divergence signals, the chances of continuing lower below the support trend line are higher. Trading near support is also a good opportunity for short-term traders to take advantage of the low risk high reward bullish trade at this level.
