USD/JPY Bullish Correction Set to Halt - Bearish Trendline In Focus
|The USD/JPY currency pair hit the bullish track and rose by 30-pips while reached on 108.70, mainly due to uncertainty eased between the United States and China trade deal.
Yesterday, the pairs dropped and hit the lowest level for 8-days at 108.25 after the global stocks and the United States Treasury yields dropped due to fresh China recession tension and Germany close to a recession.
Technically, the USD/JPY has bounced off above 108.300 support level, and the bearish trendline on the 4-hour chart is likely to keep the USD/JPY bearish today.
The MACD and RSI are trading in the selling zone, while the USD/JPY prices still hold below the 50 periods EMA level. The EMA is staying at 108.800 level, which means the USD/JPY can stay bearish below this level. Closing of test bar or Doji candle below 108.80/90 level may drive further selling in the USD/JPY pair.
USD/JPY - Trade Setup
Sell Limit 108.850
Take Profit 108.500/400
Stop Loss 109.100
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