USD/JPY Short Opportunity
USD/JPY went 4 waves down. The price broke the ascending channel (wave 4), retested it, and it looks like it is preparing for a continuation move for more downside for wave 5.
From a price action perspective, when the price breaks an ascending channel, our target is always the beginning of the channel, here at 109.59. Breaking 109.59 will push the price towards the 100% Fibonacci Extension level around 109.36 as our second target.
If the price also manages to break below 109.36, we might see a big drop to the downside which may be caused by a weaker Dollar.
Don't forget that long-term we are still bearish on DXY.
From a price action perspective, when the price breaks an ascending channel, our target is always the beginning of the channel, here at 109.59. Breaking 109.59 will push the price towards the 100% Fibonacci Extension level around 109.36 as our second target.
If the price also manages to break below 109.36, we might see a big drop to the downside which may be caused by a weaker Dollar.
Don't forget that long-term we are still bearish on DXY.
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