USD/JPY Price Analysis: Bears need to make their move or lose control in the 133s
- USD/JPY bulls eye the 133s and the foundations to track down the 135s.
- Bears are in anticipation of supply at this juncture and for deeper correction in the days ahead.
As per the prior analysis, USD/JPY Price Analysis: Bears move in and eye a significant correction towards 131.50, whereby USD/JPY moved into a phase of consolidation below 133.00 the figure, a correction into the W-formation´s neckline was anticipated illustrated as follows:
USD/JPY might be expected to return to the midpoint of the W-formation in the coming days where the neckline meets a 50% mean reversion and a 61.8% Fibonacci retracement level near 131.50.
It was explained that the bears needed to get over the 132.50s structure and onto the backside of the hourly micro bullish trend as illustrated above.
USD/JPY update
The topping pattern was put into place but there was no bearish engulfment and the price spiked into stops instead.
However, that is not to say that the downside bias is invalidated, yet. A move lower to break the structure could be the next significant development as illustrated above. However, should the bulls stay committed in the 133s, then the likelihood of a fuller bearish correction will be diminished as the bulls track down the 135s.