The US dollar against the Japanese yen currency pair appears to be under strong bearish pressure. Do bears have a chance until 103.15?
From the high of 109.85 the drop extended – initially – to the low of 106.07. From there it rallied to the high of 108.16 which would become the resistance trendline of the downtrend.
From 108.16, price hovered below the trendline, moving a hair’s breadth away from the intermediate support level of 103.15.
However, the surprise was that from 103.15, the price managed a strong appreciation, which took the price back and well above the lows of 104.18, 104.00 and 104.02, respectively. .
So, for the full picture, the lows mentioned were “deemed” impenetrable. Yet the fall made them disappear, but the long white candle seemed to have settled the situation.
Still, appreciation was halted by the double resistance zone defined by the trendline and the 105.09 high, peaking at 105.67.
As a result, the bears took over and sent the coin back below the low three, spoiling – for now – the bullish dream.
So unless the bulls revalidate the troughs as a support area, which would target 105.09, there is room for the fall to continue all the way to the 103.15 level.
If 103.15 gives way then the fall may extend to the 101.42 level – not highlighted on the chart.
Short term perspective
After the drop from the 105.34 peak, which brought the price very close to the mid-level 103.09, the bulls rallied, sending the price above the double resistance area noted by the upper line of the descending channel and the intermediate level of 105.27.
But the peak of 105.67 was all the bulls could do as the price picked up again. As long as the 105.67 decline continues, 103.09 is the primary target.
On the other hand, if the bulls manage to get the price above 104.44. then they could hope for 105.27.
Levels to watch:
D1: 103.15 101.42 105.09
H4: 103.09 104.44 105.27
If you have any questions, comments or opinions regarding the US Dollar, please feel free to post them using the comments form below.