USD/JPY Technical Analysis: Bullish correction might be short-lived


  • USD/JPY lost about 250 pips since last Thursday to current Monday’s lows. USD/JPY is currently supported by a daily trendline from March, 26. 
  • However, today’s sharp drop suggests that the bearish correction might not be over yet and a failure to build momentum above 111.39 and 111.60-111.80 area can lead to a retest of the current daily low at 110.75.
  • On the other hand, a breakout above 111.60-111.80 area can lead to an acceleration to 112.19-112.40 area.

USD/JPY 15-minute chart 

Spot rate:                 111.33
Relative change:      -0.13%     
High:                        111.51
Low:                         110.75

Trend:                       Bullish / Risk of bearish reversal

Resistance 1:  111.39 May 21 swing high
Resistance 2:  111.60-111.80 area, 23.6% and 38.2% Fibonacci retracement low/high July 11
Resistance 3:  112.19-112.40 area, July 11 high and intraday swing low 
Resistance 4:  112.64 July 12 high
Resistance 5:  113.18, 2018 high
Resistance 6:  113.26-113.38, 200-weekly simple moving average and January 8 high
Resistance 7:  114.45 October 27, 2017 high 

Support 1:    110.75 current 23 July low
Support 2:    111.02-111.16 previous intraday swing lows
Support 3:    110.90 June 15 swing high

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