Daily Price Outlook

    * USD/JPY experienced a sharp bearish trend during the Asian session, dropping to 134.50, with the formation of three black crows on the four-hour timeframe.

    * The pair completed a 61.8% Fibonacci retracement around 134.83, suggesting further downside potential if the candle closes below this level.

    * The USD/JPY could target the 78.6% Fibonacci retracement level at 134.065; if candles close above, it may trigger an upward movement, with immediate resistance at 134.83 and potential targets of 135.45 or 136.

During the Asian session, the USD/JPY traded with a sharp bearish trend, having dropped to 134.50. At present, when examining the four-hour timeframe, the USD/JPY has formed solid bearish candles, which are essentially three black crows, suggesting a dominant bearish sentiment in the market today.

On the four-hour chart, we can observe that the USD/JPY pair has completed a 61.8% Fibonacci retracement around the 134.83 level. The closing of the candle below this particular level indicates that there is more downside potential today.

With that in mind, the USD/JPY has the potential to target the 78.6% Fibonacci retracement level, which is marked around 134.065. The closing of candles above this specific level could potentially trigger a new upward movement in the currency rate today.

On the upside, an immediate resistance is observed around the 134.83 level, and a bullish break above this level may lead the Japanese yen towards 135.45 or 136.

 USD/JPY Price Chart - Source: Tradingview

USD/JPY - Trade Idea

Entry Price – Buy Limit 134

Stop Loss – 133

Take Profit – 136

Risk to Reward – 1 : 2

Profit & Loss Per Standard Lot = +$1,487/ -$743

Profit & Loss Per Micro Lot = +$148/ -$74



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