USD/JPY strong sellers
The USD/JPY pair drops like a rock in the short term. It was trading at 131.75 at the time of writing. It failed to stay above the historical level and turned to the downside. You knew from my analyses that the currency pair could approach and reach new highs as long as it stays above the uptrend line.
Dropping below the uptrend line signaled that the upside movement ended and that the sellers could drag it lower. The 131.05 former low represents the next downside target and obstacle.
USD/JPY trading conclusion
Dropping and stabilizing below the 131.05 level activates more declines and helps traders to sell this pair.
