USD / JPY Technical Forex Analysis for Forex Traders

After the Yen’s strength penetrated the lows of last December & January, we were left with no notable support protecting the 15-year low which was reached last November at 84.81! We will not be a bit surprised if this pair started to move in that direction, and tried to break that low! On the contrary, we have been expecting this for weeks now, and it was included in our reports several times. But, signs show that the possibility of a rising correction is growing, to correct the drop from Wednesday’s top 89.09 to Friday’s low 86.25. On the top of these signs: the inverted hammer formation, which appeared on the daily chart. Therefore, and even though we are negative about this pair on the medium term, we should not neglect these signs which force themselves upon us for today! Short term support is at 86.78, and if broken, the price will continue searching for new lows, targeting 85.84, then the 15-year low 84.81. Resistance is presented by the falling trend line from Wednesday’s tops, which is at the first Fibonacci level 87.33, if broken we will ideally target short term Fibonacci level 88.01 & if broken a quick jump to 88.64 is to be expected.

Support:

• 86.76: the rising trend line from yesterday’s low.

• 85.84: Nov 30th low.

• 84.81: Now 27th low, and the lowest level since 1995!.

Resistance:

• 87.33: short term Fibonacci 38.2% level.

• 88.01: short term Fibonacci 61.8% level.

• 88.64: the falling trend line from Jun 4th on hourly chart.