Technical analysis of USD/JPY 02/26/2020
The USD/JPY currency pair has fully completed the projection of the inverted head and shoulders pattern, finding resistance at 112.15 and expanding the range of the ascending channel on the 1D timeframe.
Currently, the pair is in a downward correction, consolidating in the level of 110.50. The technical view is suggested the further development of a downward correction. The nearest key support is at the intersection of (MA 100) and (38.2% Fibo) in the area of 109.20. However, the scenario of quotes reduction towards the intersection (MA 200) with (50% Fibo) and the lower border of the ascending channel in the level of 108.30 is also justified. After that, the renewal of the growth of the pair within the ascending channel with a target 114.00.
Cancellation of the pair growth option after correction will be a decrease below the area of 107.40, what will indicate a breakdown of the lower boundary of the ascending channel, (MA 100), (MA 200), (61.8% Fibo) and could mean a possible change in trend with the prospect of a decrease to a key annual minimum to the area 105.00 – 104.50.
Created by Joshua Hayn