On the USD / JPY daily chart, bulls fulfilled the target on the previously formed longs but failed to overcome the important resistance at 115.35. As a result, the descending trading channel has been formed.
If quotes don’t go out from its boundaries, the upwards trading channel will unlikely be restored. The nearest support is located at 112.5.
On the USD/JPY hourly chart, bears are trying to go back to the descending trading channel. The key moment will be the test of the support at 113,95-114. Its breakout can lead to the restoration of the medium-term downward trend. If the aforementioned support is not tested, the bulls may start their attack in the direction of the target 161.8% in the AB = CD pattern.
Origin: FX BAZOOKA
