- USD/JPY is looking south, having created candles with long upper wicks.
- The pair is still trapped in a bearish channel.
USD/JPY risks falling back toward 108.00 today, having charted back-to-back daily candles with long upper shadows.
A candle with a long upper shadow is considered a sign of buyer exhaustion.
A break below 108.31 (Monday’s low) today would validate the buyer exhaustion near 108.80 signaled by the daily candles with long upper shadows and could yield a drop to fresh 2019 lows below 107.81.
The outlook would turn bullish if and when the spot exits the falling channel with a move above the upper edge of the bearish channel, currently at 109.32. The pair is currently trading at 108.45, representing minor gains on the day.
- R3 109.22
- R2 109.01
- R1 108.76
- PP 108.56
- S1 108.31
- S2 108.1
- S3 107.86
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