At the time time of writing this analysis, the US Dollar currently trading at 110.775 against the Japanese Yen during the London Session.
We required a break of our support at 110.000 where we could see a new leg to the downside however we have bounced off of support fairly well.
Starting on the weekly timeframe we can see price had a massive sell-off last week straight in support. On the daily timeframe, price has formed a fairly bullish rejection where we could see price pulling back higher before heading lower once again.
Dropping down to a 4-hour timeframe we can see price previously found support at 110.900 where we have now broken through which then turns into resistance. I do expect us to come and tap this new found minor resistance before heading lower. My overall downside target for the pair is 108.000 which is a good 250 PIP trade from the current price. As illustrated on the chart above we could potentially fall from current price action or worst case scenario we get a third rejection of our descending trendline. What would invalidate my short bias is a break of our descending trendline at 111.250 which lead towards our next weekly resistance of 112.000.
Fundamentally we had US GDP data coming out at 2.2% which came in lower than predicted at 2.4% -this will affect the pair going forward.
We required a break of our support at 110.000 where we could see a new leg to the downside however we have bounced off of support fairly well.
Starting on the weekly timeframe we can see price had a massive sell-off last week straight in support. On the daily timeframe, price has formed a fairly bullish rejection where we could see price pulling back higher before heading lower once again.
Dropping down to a 4-hour timeframe we can see price previously found support at 110.900 where we have now broken through which then turns into resistance. I do expect us to come and tap this new found minor resistance before heading lower. My overall downside target for the pair is 108.000 which is a good 250 PIP trade from the current price. As illustrated on the chart above we could potentially fall from current price action or worst case scenario we get a third rejection of our descending trendline. What would invalidate my short bias is a break of our descending trendline at 111.250 which lead towards our next weekly resistance of 112.000.
Fundamentally we had US GDP data coming out at 2.2% which came in lower than predicted at 2.4% -this will affect the pair going forward.