USDJPY: The scenario of turning back the bullish track - Technical Analysis - 27/08/2015
The USDJPY pair faced strong negative pressure recently affected by the last Chinese economic data, while on the technical side, the price completed forming a double top pattern that forced the price to decline sharply to reach the long term ascending channel’s support, noticing that the price bounced upwards quickly to cover the losses that it suffered.
Now, the price is attempting to breach the key resistance 120.40 that represents the previously broken neckline of the above mentioned pattern, and breaching this level will offer the first key to the chances of resuming the main bullish track.
It is important to note that there are negative pressure that the price is facing now, start with stochastic negativity followed by the exponential moving averages 50 and 100, while we notice that MACD is positive now, waiting to motivate the price to complete the breaching process.
The initial expected targets begin at 123.25 followed by 126.00.