The USD/JPY pair has been trading lower since the 22nd of January 2016, with the bearish pressures being noticed from as high as 118.87 to as low as 117.71.
On Monday, the pair struggled to remain at the level of 118.87, but found enough resistance to force the pair lower, thus correcting to the downside. Today, the pair fell from 118.33 down to 117.71. In the event that the sellers keep pressing the pair lower and the price breaks below 117.71, profit targets could be set at 117.43 and 117.08 respectively.
Alternatively, in the scenario where the pair attempts to test the higher levels once again and the price manages to successfully break above 118.45, the pair could escalate up to 118.87 and 119.56 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.