USD/JPY breaches an important support level. - Technical Analysis - 28-12-2015

USD/JPY kept declining in its intra-day levels and short-term trading, with the continuance of the negative pressure from the simple moving average for the last 50 days period; breaching thereafter the important support of 120.83, which represents the ratio 38.2% of Fibonacci retracement levels for an ascending wave in the medium term (from 116.13 to 123.75); with the pain leaning on the support of 119.14, which represents the ratio 50%, which led it ti bounce off of it in the morning trading, trying to recover some losses.

 

Therefore we expect more losses for the pair, especially in case of it breaching the support of 119.14, targeting thereafter the crucial support of 119.04, which represents the ratio 61.8% of the same retracement levels mentioned earlier.