Green lines- bullish short-term channel
Red lines- bullish medium-term channel
USDJPY is challenging the short-term bullish channel. Price has revisited October 24th lows. Bulls are trying to keep price inside the bullish short-term channel. Price is making lower highs and lower lows, forming a bearish pattern that implies more downside should be expected. Support at 145.90 is key for the short-term. If bulls fail to hold this support, price will be vulnerable to a bigger decline towards the lower red channel boundary at 140. USDJPY has lost more than 500 pips in less than 5 trading sessions. Volatility has increased and we are at a key junction for the short-term trend. USDJPY can lose another 500 pips if recent lows fail to hold. Bulls need to step in now and support the fx pair.
