HomeContributorsTechnical AnalysisUSD/JPY Additional Drop Expected

USD/JPY Additional Drop Expected

The currency pair has dropped significantly in the morning and seems too heavy to be stopped on the short term. USD is going down versus all its rivals as the dollar index is under massive selling pressure. The index could approach and reach the nxt downside target from the 91.91 static support, we’ll see how will react after will hit this level.

The 91.91 level represents a crucial support, a valid breakdown will confirm a medium term drop and a USD’s massive depreciation versus all its rivals. The Japanese Yen rallied on the mixed economic data, the Household Spending dropped by 0.2% in the previous month, even if the economists have expected to see a 0.8% growth. Moreover the Unemployment Rate remains steady at 2.8% for the second month in July, matching expectations.

The price should drop further after the retest of the minor red uptrend line, the next downside target will be at the 108.13 horizontal support. Technically is expected to drop much deeper after the failure to stabilize above the second warning line (wl2) of the descending pitchfork. You can see that has retested the wl2, signaling a further decrease. The next major downside target will be at the first warning line (wl1), will approach it only if the Nikkei stock index will slide further.

MultiBank Exchange Group
MultiBank Exchange Grouphttp://www.mexgroup.com
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.

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