USD/JPY: Big Moves With This Pair
Big moves with this pair during the last Asian session as we saw price fall from where we had been stalling over the past week, around the 110.50/60 area, to break 100 PIPs lower to the 109.50/60 region. A strong break of the daily trend line and the important break of the 110.00 key level, once again, has this pair currently looking very bearish. We are now seeing price pull back slightly, around 30 PIPs from today's lows, as we look towards a retest of broken support now turned resistance at the 110.00 level. Should we reject this level and price fails to break back above, we will see a second wave of short selling as we will slide towards the 109.00 level.
Today's daily candle close above or below the key 110.00 level will be important in this critical region, to show how price respects such a major level. Should there be a close back above, this can show signs there are bulls still in this market although should price close below. We can expect this pair to keep falling over the coming days.