May 29, 2018
Earlier pair was heading north side and getting interest of buyers but all of sudden pair started to losing their bullish strength and turned back to downside. An uptrend line was favoring the bullish sentiments but it has been breached out which indicates trend reversal signal and indicating that bears are in the picture. Pair started to decline after making the high of 111.35 when everything was in favor of bulls but then it seems like bears snatched the bite from the bull’s mouth and slipped to 109.06.
Pair is hovering at 109.06 level which is 38.2% of Fibonacci retracement level and we may see further decline to 50% and 61.8% Fibonacci retracement level. Presently pair is trading below all major and minor EMA lines which indicates that trend has been shifted from upside to downside however we will get further confirmation once stock will trade and settle below 107.50 level. Market players will likely choose to wait until Wednesday, when the US will release core PCE inflation, before taking firmer positions in the pair. In the meantime, risk sentiment will favor the downside in USD/JPY.
Two big bearish marabuzo candlesticks has been formed on the daily technical chart which is generating bearish sentiments and indicates that it may fall down further. The way bears has changed the mindset of traders and investors it seems like they are approaching the 107.50 level at downside. A bearish crossover on MACD indicator is favoring the bears and RSI twisted back to south side is also validating this downfall. Our intraday bias remains bearish as long as 111 level remains undamaged. The 111.50 level is key resistance level followed by 112.50 whereas 107.50 is key support level followed by 106.50 level.