USD/JPY Market Analysis: Downside CorrectionThe USD/JPY has been a tricky customer in the past few weeks.
We have attempted a few shorts which did not work out, the price persisted to the upside eventually breaking key structures that hold the downside.
The Bullish breaks confirm the Longer-term trend (Bullish) has resumed, however, the current rally is losing steam and we can capture a strong reversal to reset the trend.
Overview and breakdown
Current Trend: UP-Trend
Next Expectation: Downside Correction (Secondary Trend) to discount the rally for a reset of the Up-trend and to offer a lower price discount.
Area of target: Target 1: 156.28 & Target 2: 155.23 These areas represent the key structural points. The second target is the most technical point that represents the last untested structure. This point is the safety point for the buyers that enter the bullish trend at a later date. In most cases, the price correction (Secondary trend) will get here.
Another important thing to note with the 2nd Target is that; it corresponds nicely with the Fibonacci Buy-Zone measured from the Low of the entire rise to the High.
Risk and Stop Loss: Price 157.25; Technical Stop above the Momentum High.
