The USD/JPY pair has been trading lower since the 29th of January 2016, following the introduction of negative rates by BoJ, with the sellers leading the price from as high as 121.67 to as low as 120.35.
On Monday, after consolidating for a while, the pair fell down to 120.67, but found enough support to turn back around. Today, the price fell from 121.03 down to 120.35, but once again managed to turn back around, currently trading at 120.73. In the event that the sellers resume their previous activity and the price breaks below 120.13 the pair could find support at 119.68 and 119.17 in extension.
Alternatively, in the scenario where the buyers keep exerting strong pressures and the price breaks above 121.03, the pair could go up to 121.16 and 121.67 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.