- 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
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.