Technical analysis of USD/JPY for August 01, 2016
The USD/JPY pair could form a descending impulse so far. It continues moving downwards from the prices of 103.29 (61.8% Fibonacci Expansion). The market has reached all targets of extensions. According to the main scenario, it may start forming correctional structures. Today, the price may move towards the level of 102.00 and then reach new minimum again. Hence, the price may reach one more minimum below the price of 102.00 and then start new correction towards the level of 102.00 (100% Fibonacci Expansion). Therefore, we expect an eventual continuation of the longer-term bearish trend. Another support can be found at 100.70 and 99.03. Therefore, a fall is still expected from 102.00 (first low) and the second low is set at 100.70 as a counter-trend move within an overall bullish trend. Then, we favour a minor move towards the key support at 99.03. Repeating, the strong resistance will set at 103.29. Subsequently, sell positions are recommended below the 103.29 level with targets at 100.70 and it will resume towards 99.03 to retest the strong support price at 99.03. On the other hand, resistance will set at the price of 103.29. So, the breakdown of 103.29 will allow the pair to go further up to the levels of 134.10 and 105.35 in the next days.