The USD/JPY pair has been trading downwards since the 29th of January 2016, following the introduction of negative rates by BoJ, with the sellers leading the price from as high as 121.68 to as low as 117.05.
On Wedneday, the pair fell from as high as 120.04 down to 117.05, but once again during the US session, manage to turn back around, with the price rise from 117.05 up to 118.23. In the event that the sellers resume their previous activity and the price breaks below 117.05 the pair could find support at 116.71.
Alternatively, in the scenario where the buyers keep exerting strong pressures and the price breaks above 118.82, the pair could go up to 119.36 and 119.91 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.