USD/JPY to Test Declining Resistance
- Daily and 4H: The USD/JPY is showing continuing bullish attempt towards the declining resistance.
- After holindg 88.00, the pair bounced and paused first after a 61.8% retracement at 90.70. After a short correction to 89.75, the pair is rallying again.
- The current rally may see resistance at the 91.30-91.50 area. This is the 78.6% retracement of the previous swing, and a 61.8% retracement of a larger scale decline.
- The declining trendline is an important line to break if the market is to be bullish in the intermediate and long term.
- So far, bullish attempts have been limited to the short-term context within a long-term decline.
- In fact, if there is topping action near 91.30, further decline to wards 87.00 is possible.
Fan Yang
Currency Analyst
Commodity Trading Advisor
