In our last analysis on USDJPY we warned bulls that a rejection at the upper triangle boundary would lead to a push lower and with increased chances of breaking the triangle pattern to the downside. Yesterday price got rejected at the upper triangle boundary and turned lower and broke below the lower boundary providing an added bearish signal.
Blue line- support (broken)
Black lines - trading range
USDJPY is approaching the lower boundary of the trading range it has been in since June. Price initially gave a bearish signal yesterday when it got rejected at the resistance of 110-110.20. Then another bearish signal was given once price broke below the blue support trend line and lower triangle boundary. Price is approaching our first target area which is at 109.15-109.25. Short-term trend is bearish.
