USD/JPY has formed a Channel Up pattern on the 1H chart. The pattern has 69% quality and 52% magnitude in the 125-bar period.
The pattern started when the pair rebounded from 79.987 and after testing pattern's support levels at 79.310 and 79.423 it has slowed down at around 79.500 where the pair is currently trading. The SWFX market sentiment is in favor for the bulls with 75% of traders anticipating pair's appreciation. Long traders expecting that the pair will follow the pattern's trend could focus on the intraday plunge on 9th of July at 79.543. If this level will be breached next targets could be set at 79.594 and at SMA200 level at 79.675.
Technical indicators on aggregate strongly suggest a further depreciation of the pair on the 4H outlook. Short traders could focus on the 10th of July low at 79.471. If this level is breached, next targets could be set at 8th of July low at 79.423 and the 2nd of July low at 79.310.