- The previous 15-minute candle of the USD/JPY closed at 113.85, confirming a downside break of the bear flag - a bearish continuation pattern - meaning the sell-off from the previous day's high of 114.55 has resumed and the pair could drop to 113.00 (target as per the measured move method).
- The bearish breakdown has happened after the news hit the wires that the Bank of Japan has kept the size of the ultra-long bond purchases unchanged from the previous operations, signaling growing tolerance for higher yields.
- The sell-off, as called by the bear flag breakdown, could gather pace if the EM currencies continue to slide, worsening the risk aversion in the global equity markets.
Spot Rate: 113.88
Daily High: 114.10
Daily Low: 113.84
R1: 114.06 (Oct. 1 high)
R2: 114.55 (previous day's high)
R3: 114.74 (November 2017 high)
S1: 113.53 (10-day exponential moving average)
S2: 113.00 (psychological support)
S3: 112.73 (38.2% Fib R of 109.77/114.55)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.