USD/JPY Price Analysis: Bears need to make their move or lose control in the 133s
|- USD/JPY bulls eye the 133s and the foundations to track down the 135s.
- Bears are in anticipation of supply at this juncture and for deeper correction in the days ahead.
As per the prior analysis, USD/JPY Price Analysis: Bears move in and eye a significant correction towards 131.50, whereby USD/JPY moved into a phase of consolidation below 133.00 the figure, a correction into the W-formation´s neckline was anticipated illustrated as follows:
USD/JPY might be expected to return to the midpoint of the W-formation in the coming days where the neckline meets a 50% mean reversion and a 61.8% Fibonacci retracement level near 131.50.
It was explained that the bears needed to get over the 132.50s structure and onto the backside of the hourly micro bullish trend as illustrated above.
USD/JPY update
The topping pattern was put into place but there was no bearish engulfment and the price spiked into stops instead.
However, that is not to say that the downside bias is invalidated, yet. A move lower to break the structure could be the next significant development as illustrated above. However, should the bulls stay committed in the 133s, then the likelihood of a fuller bearish correction will be diminished as the bulls track down the 135s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.