USD/JPY Price Analysis: Bulls eye HoLW and a 78.6% ratio

USD/JPY bears are waiting to make the move.
Bears eye key resistance near a 61.8% Fibonacci, but note higher prospects.

Ross J Burland FXStreet

The yen dropped against the dollar on Friday after Reuters reported the Bank of Japan (BoJ) is leaning toward keeping its key yield control policy unchanged next week. We have seen a range of between 139.74 and 141.95 on Friday and this sets up next week for a possible correction from a 61.8% Fibonacci retracement area in the opening range:

USD/JPY technical analysis

USD/JPY H4 chart

However, the high of last week, HoLW, could be a target before where the area meets a 78.6% ratio. The current bullish trend line remains intact after all.

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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