USD/JPY Price Analysis: Bears move in and eye a significant correction towards 131.50

USD/JPY bears are in the market and guarding the 133 area.
Bears will seek a move to test the prior highs and the neckline of the W-formation.

Ross J Burland FXStreet

USD/JPY has moved into a phase of consolidation near 132.90 and below 133.00 the figure that has served as a key area in the prior days of March. If the bears commit, then a correction could be on the cards and given the W-formation, this is a high probability. The following illustrates such a prospect on the daily charts:

USD/JPY daily charts

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.

USD/JPY H1 chart

The bears need to get over the 132.50s styructure and onto the backside of the hourly micro bullish trend as illustrated baove.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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