USD/JPY Deeper Drop Still Possible!
USD/JPY is trading at 114.50 at the time of writing and it could reach and retest the downtrend line soon. Technically, the downtrend line represents an upside obstacle. As long as it stays under this dynamic obstacle, USD/JPY could drop deeper.
In the short term, it has found demand (support) at 114.19 level. This represents a downside obstacle.
USD/JPY Trading Conclusion!
Staying below the downtrend line and dropping under the 114.19 could announce further drop at least towards 113.55.
On the other hand, staying above the 114.19 and jumping above the downtrend line could announce that the downside movement is over and that the USD/JPY could develop an upside movement, a new uptrend.
