USD/JPY: A Look at US Dollar to Japanese Yen Daily Chart
Titan FX | May 22, 2017 10:02PM ET
Key Highlights
· The US dollar is following a descending structure against the Japanese Yen with resistance near 114.00-115.00.
· There is a monster expanding triangle pattern formed with support at 106 and resistance at 114.50 on the daily chart.
USD/JPY Technical Analysis
The daily chart of USD/JPY suggests a declining structure for the US dollar towards 110.00 against the Japanese yen. The pair faced a major resistance near 115.00, and may continue heading lower.
The worst thing at the moment for the USD buyers is a close below the 100-day SMA at 112.75. It ignited a sharp downside move towards 110.50. The pair is finding support at 61.8% Fib retracement level of the last wave from the 108.13 low to 114.37 high.
So, there is a chance of a minor correction towards the 100-day SMA at 112.75, but it is likely to be short-lived.
As long as the pair is following the highlighted expanding triangle pattern with resistance at 114.50, there can be more declines towards 110.00 or even 108.00.
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