USDJPY is trading again at 128.60 area lower than yesterday. In our previous analysis yesterday we warned that price was vulnerable to more downside as long as it trades below the downward sloping resistance trend line and 130.15.
Black lines- Fibonacci retracements
Red line- short-term resistance
The first bearish signal was given when price broke out of the bullish channel. Our first target is the 38% Fibonacci retracement. Price has started making lower lows and lower highs. As long as price is below the red resistance trend line then we remain bearish looking for a move towards the major Fibonacci retracement levels of 38% and 61.8%. If bulls manage to push price above 130.15 then we might see a new higher high for 2022 before starting a correction.
