USDJPY back into ascending channel zone | 18th May 2017

Posted on Posted in Technical Analysis

USDJPY technical analysis: Back into the daily ascending channel |18th May 2017

First critical Resistance: 111.48 (Channel resistance)

Second critical Resistance: 115.42 (High of 10th March 2017)

First critical Support: 107.96

Second Critical Support: 105.40

Overall Sentiment: Bearish∇

The USDJPY pair rallied higher and broker the channel resistance level but ultimately failed to keep its bullish momentum in the market after hitting the resistance zone at 114.22 in the market. The pair sharply dropped from that level and again dipped into the ascending channel zone signifying that the medium-term bearish trend is still in place.

USDJPY daily technical analysis

Currently, we are looking for the minor bullish pullback in the USDJPY pair towards the channel resistance level at 111.48. A bearish price action confirmation signal at the channel resistance will confirm our short entry with an initial target towards the critical support level at 107.96.

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