In our analysis yesterday when price was trading around 115.55, we warned that USDPY was vulnerable to a move lower below 115. Short-term trend remains bearish as price is making lower lows and lower highs. Today price made a low at 114.87 and has potential to move even lower.
USDPY has already reached our first target and is heading towards our second target towards 114.60. There is no sign of a reversal. The RSI did not make new lower lows and has provided a bullish divergence in the 1 hour chart. This is not a reversal signal. As long as price is below 115.20 I can not see a bigger bounce coming.
