JPY Trading Outlook (03-09-2015)

Medium Term Strategy: Forex Pair of the day

USD/JPY – under pressure
The pair has broken below the lower boundary of the triangle pattern and then faced a pull back ahead of further weakness below the moving averages. Moreover, the daily RSI is badly directed and not oversold. Then, further weakness is likely with 115.50 as a first target (December bottom) and 113.40 in extension (horizontal support). A third target is set at 110 (strong horizontal support and overlap). Only a rebound above 126 (June top)à would call for a bullish trend reversal with 127.70 as a first alternative target and 132 in extension.
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