The USD/JPY continues to see a substantial bearish track displayed and current price value is within sight of mid-term support not touched since late May.
After reaching a high of nearly 111.70 in early July, the USD/JPY has displayed a definite and strong bearish trend lower. As of this writing, the Forex pair is traversing important support ratios which have not been fully tested since late May of this year. Yes, on the 19th of July a low of 109.050 was approached, but this was a swift test which saw a strong reversal higher and a mark of 110.550 nearly attained on the 23rd of July.
Intriguingly, since reaching this short-term high, the USD/JPY has produced an incremental bearish trajectory again and the current price around the 109.225 value has not seen a significant amount of volatile moves upwards. The USD/JPY has a rather impressive tendency to sustain trends in a durable fashion and if current support levels near the 109.200 prove vulnerable and a test of 109.100 unfolds, traders could not be faulted for suspecting the 109.000 ratio could be a legitimate target for sellers.
In late April of this year, the USD/JPY was trading near the 107.750 mark and eventually achieved the high exhibited in early July. Technically, it appears the USD/JPY may be within the groundswell of a rather impressive bearish movement which will test late May values if momentum remains.
If the support near 109.000 crumbles it could mean that further lows can be achieved, which could conceivably test the 108.700 price. However, traders should remember to keep their trading ambitions within a reasonable framework and not over-extend their goals. Using reasonable take-profit objectives is always the best choice, particularly when leverage is being used as a tool to achieve better profits.
The recent trend of the USD/JPY has created a rather significant downturn and traders may want to continue to anticipate further movement lower. Fighting the trend of the USD/JPY can often prove to be a painful endeavor. Selling the USD/JPY on slight moves higher may a worthwhile speculative wager for traders who believe support levels will continue to prove a magnet while looking to take advantage of reversals lower which could remain prominent. If the 109.100 is effectively broken and prices are sustained beneath this ratio, it could create a stronger amount of selling to be demonstrated.
USD/JPY Short-Term Outlook:
Current Resistance: 109.310
Current Support: 109.120
High Target: 109.475
Low Target: 108.850