USD/JPY Is Retracing

USD/JPY is currently retracing to the downside after finding some resistance at 110.70 and forming a spinning top candlestick on the four-hour time-frame at that level. The pair bounced off from the resistance and moved to the downside towards the support at 110.30. If the pair eventually breaks out below that level the move to the downside should continue towards the support at 109.80, which is the (MA)89 indicator on the same time-frame. A breakout below that level could lead to a further move to the downside towards 109.20, which is the last low. However, if the pair continues moving to the upside and breaks out above the last high at 110.70 it will likely continue rising towards 111.40.

USD/JPY Continues Consolidating

USD/JPY reached the resistance at 104.20 and bounced off of that level after forming a spinning top candlestick on the four-hour time-frame. The pair is currently testing the support at 103.75 and a breakout below that level would likely lead to a further move to the downside towards the next support, which is at 103.30 and coincides with the (MA)89 indicator on the four-hour time-frame again. Considering that the pair has been forming a sideways consolidation for the past two weeks we can probably expect another bounce off that support and a test of the 103.75, which from a support level would have become a resistance.

The USD/JPY Move to the Upside Is Stalling

USD/JPY formed a double bottom above the support 100.08 but it appears that the current move to the upside will stall at least for now, because the pair reached the resistance at 101.75 and formed a very impressive shooting star candlestick on the four-hour time-frame which is a signal for a new move to the downside. That said, the pair is currently also testing the support at 101.30, which coincides with (MA)89 on the same time-frame and whether USD/JPY will continue dropping depends on whether it will break below that support. If it does we will likely see a further drop towards the next support at 100.70 or even towards the 100.08 level where the double bottom is.