The USDJPY has weakened making a bearish zig-zag and the weakness followed the World Bank report which cut Japan 2016 forecast growth. Against JPY, USD is losing the battle which I see as a risk off sentiment. Remember - Gold UP, Commodities prices down, Equities down - Yen strengthens as a result.
Technically the pair has made a bullish pin on H1 time frame and accompanied by a bullish divergence it could spike the price up towards 118.80-90 (50.0, previous triple top/historical sellers, E89) and the price could reject towards 118.15 and today's lows at 117.32. If the pair proceeds without rejection in the first POC zone 119.20-30 is the next zone for shorts (L3,61.8, bearish order block). If the pair proceeds below 117.32 without making any retracement, look for a momentum H1 candle break which will collect some stops towards 117.00 and 116.20.
Only above 119.70 the pair will be bullish and we can negate the bearish trend.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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