USDJPY reached 120.50 after a big spike down preceded by PBOC decision to reduce its interest rate and ease bank reserve requirements. Technically a huge drop which we see on USDJPY chart is actually a BEARISH PENNANT and short to mid term the pair could bounce from 120.50 targeting even 114.40 levels (!). Bearish pennant can be seen on H4 chart but zooming in we can see it better on H1 chart. Adding the flagpole distance to the projected distance from breakout and we get 114.40.
Weekly cam pivots show L4/L5 confluence with a bearish pennant adding one more part of chart confluence. The projected move is short to mid term. Intraday shorts could reach 119.10 zone. Have in mind that the move is valid as long as 121.50 stands strong.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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