USD/JPY Price Analysis: The bears are lurking around daily resistance, 140.50 exposed
- USD/JPY has run into the 142.00 area in a 50% mean reversion of the prior bearish impulse.
- USD/JPY downside could be the first port of call and that leaves 140.50 exposed.
As per the prior analysis, USDJPY Price Analysis: Bull move in and eye 143.00 area, the pair has followed the forecasted trajectory from the trendline support and bulls continue to eye the 143 area.
USD/JPY daily chart, prior analysis
It was stated that so long as the price stays on the front side of the daily trendline, there would be prospects for a significant bullish correction in the days ahead.
The 61.8% ratio was in sight within a price imbalance area.
USDJPY update
The price has since run into the 142.00 area in a 50% mean reversion of the prior bearish impulse but has left a W-formation on the charts as follows:
The price imbalances greyed areas, are compelling areas for mitigation, and given the resistance, the downside could be the first port of call and that leaves 140.50 exposed.
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.
