USD/JPY: Small Bullish Correction Likely
This week started badly for USD/JPY. Yesterday, the price managed to break the line supporting recent higher highs that were made during August (blue line). This gave bears the momentum to drive prices lower—to the 96.95 support. This area stopped the selloff, at least for now. The most probable scenario is a small bullish correction, and later, probable further downswing. The next support is at 95.90, and breaking this level will have a huge impact on the long-term situation on this pair, causing further appreciation of the Japanese Yen.
USD/JPY” title=”USD/JPY” width=”1102″ height=”492″ />The closest resistances are: 98.45 and the red trendline, which is connecting the lower highs for the past few weeks. Breaking those two levels will have a positive impact on this pair, and will have a potential to start another bullish wave. Currently, in the mid-term, sellers seem to be winning the battle, and breaking the 96.95 support seems more probable.