Green lines- bullish short-term channel
Red lines- bullish medium-term channel
USDJPY is challenging the short-term bullish channel. Price has revisited October 24th lows. Bulls are trying to keep price inside the bullish short-term channel. Price is making lower highs and lower lows, forming a bearish pattern that implies more downside should be expected. Support at 145.90 is key for the short-term. If bulls fail to hold this support, price will be vulnerable to a bigger decline towards the lower red channel boundary at 140. USDJPY has lost more than 500 pips in less than 5 trading sessions. Volatility has increased and we are at a key junction for the short-term trend. USDJPY can lose another 500 pips if recent lows fail to hold. Bulls need to step in now and support the fx pair.
The material has been provided by InstaForex Company – www.instaforex.com
