USD/JPY Price Analysis: Bulls step into the bear's layer
|- USD/JPY is testing the resistance of both structure and a counter trendline to the price action today.
- 4HR channel resistance pressures bulls back and open prospects of a run back to 105 the figure.
The price of the US dollar has been tumbling since May's initial drop and there has been no let-up in the supply on a weekly basis since the end of June.
This leaves the market heavily short of the greenback and vulnerable to correcting that position.
However, from a short term outlook, the price is retracing 61.8% of the recent bearish impulse on the 1-hour time-frame and is meeting a counter trendline resistance on the 4HR chart.
There is scope to a run back to the recent lows which open prospects of a 61.8% retracement of the late July bullish impulse.
105.00/30 falls in as a realistic downside target should the dollar continue to bleed out for the near-term and bulls guard the said trendline resistance.
4-HR downtrend
1-HR chart
Bulls are testing the bear's commitments at the structure. Failure here opens prospects of the downside.
15-min chart
The conditions are not in place for taking advantage of any downside prospects until MACD is below zero and we have further confirmation below the highlighted structure.
However, the conditions are ripening which brings 105.00/30 into scope.
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