The USD/JPY pair resumed dropping and it was trading at 133.43 at the time of writing. You knew from my previous analysis that the price could approach and reach new lows after activating a bearish pattern and taking out strong support levels.
The pair extended its drop after the USD was affected by the US CB Consumer Confidence data yesterday. Today, data on the US Goods Trade Balance, Durable Goods Orders, and Core Durable Goods Orders could have an impact. Tomorrow, the US Advance GDP and Unemployment Claims will be the major events of the day.
USD/JPY Leg Down!
Technically, the USD/JPY pair ignored the 50% (133.78) retracement level signaling more declines. You knew from yesterday's analysis that this scenario could bring new short opportunities.
As you can see on the H1 chart, the price tested and retested the broken 50% retracement level confirming a downside movement. Now, it is challenging the weekly S1 (133.38) downside obstacle.
USD/JPY Outlook!
A bearish closure below the weekly S1 (133.38) after confirming its breakdown below the 50% retracement level is seen as a selling opportunity.
