FOREX: USD JPY – Bears still in the majority

EUR JPY currency pair as well, despite all expectations, continues to decline and is approaching the long-term low at 105.42 level. From the perspective of technical analysis, however, we note the 4H chart, as the currency pair broke through the strong support at 113.40 and then this level of respect has a strong resistance. Tonight, the market has created a new temporary low level at 108.23. Other puncture of the temporary low currency pair may move down, 107.50 up to the surface. On the contrary, any growth would slow down the level of resistance at 109.50 in the event of a puncture will be the next target level of 110.50 to 38.2% Fibonacci retracement values ​​between 114.16 and 108.23.

The daily chart shows how the currency pair decreases and approaches the level of long-term low at 105.42. It is in the range from 105.42 to 106.49, we see very strong slide, so we expect a further decline to only those limit values. Rather, the focus now on finding signals a turning point. The first of them would be breaking back up through the levels of strong resistance zone from 113.40 to 114.16. The final confirmation of change of sentiment will be strong resistance to puncture 123.31.