Last week it was heavy selloff for USDJPY from the Top 112.22 to 107.510. This pair is strongly bearish now and could fall heavily for the coming week. As the daily chart confirms that it breaks the channel support 109.00 and also closed below the channel support. Next support is seen at 106.650.
As China’s factories activity plunges to an all-time low, worse than the global financial crisis and also the fear on market because of coronavirus, Investors are more willing to buy the safe-haven Yen, we could see USDJPY will be hammered down to 104.500 area for the coming weeks.
Now we can see on Daily chart USDJPY has formed a double Top bearish pattern and our analyst is suggesting that USDJPY might reach 104.500 for the coming weeks.
On the other hand daily close above the channel support, 109.250 will stop the negative scenario and leads the price to resume trading inside the bullish channel.
A possible setup could go for short is to target TP1: 106.650 and TP2: 104.500 by putting stop loss at 109.250.
This trading analysis is only for getting an idea about the current market situation. This is not a signal. These can be used for education purposes only.