USD/JPY - Continues To Make Lower-Lows
Following some choppy price action over recent weeks we are now seeing some strong bearish action on this pair.
On Friday we saw price once again drop below the important key monthly level of 110.00 as we headed towards the trendline support just beneath. As explained on our technical floor we were expecting a minor pull back from the trend line support to retest the 110.00 region that we had just broken and upon some bearish price action would be taking a short trade.
We had the rejection that we wanted as shown in my chart with my second highlighted area and managed to then break through the daily trendline and push lower. Had this short trade been missed there was another chance on the retest of the broken trend line and also the third rejection of the new 4-hour downtrend.
Today we have dropped over 50 PIPs to trade around the 109.40/50 region breaking through the daily support of 109.55. From here we are likely to see a further decline towards 109.20 which could easily happen today, then long term we have our sights now firmly on 108.00.