USD/JPY drops after failing to stabilize above the weekly pivot (109.15). Now is pressuring the uptrend line, so a valid breakdown could announce a downside reversal. It remains to see what will really happen because the DXY's potential rebound today could send the pair higher.
The US is to release the Flash Manufacturing PMI, Flash Services PMI, and the Existing Home Sales. Better than expected data could boost the greenback and could lift USD/JPY. The pair is trading in the red right now only because the DXY (US Dollar Index) is trading in the red.
USD/JPY Attention At Support!
USD/JPY moves in a range on the H4 chart. It's pressuring the uptrend line after registering false breakouts above the pivot point (109.16). It has also failed to stay above 109.00 psychological level signaling high selling pressure.
Dropping and closing below the uptrend line may signal a further decline towards 108.33 static support. You should know that only a valid breakdown from the current range may really validate a downside reversal.
On the other hand, a new false breakdown through the uptrend line followed by a bullish fly above 109.35 could really indicate the swing's higher continuation.
Forecast!
Buy USD/JPY from above 109.35 and use the R2 (110.59) as a potential upside target.
Sell USD/JPY if it drops and stabilizes below 108.33 level. 107.08 could be used as a downside target.
