- USD/JPY pulls back after breaking a bearish price pattern.
- The pair is still in a bearish trend, however, it is likely to continue lower.
USD/JPY pulls back after breaking out of a bearish Expansion Formation (BF) pattern and pulls back to the 50-day SMA. The pair is probably in a short-term downtrend that is more likely to extend.
The first bearish target is located at 148.54, the 61.8% Fibonacci extrapolation of the pattern height extrapolated downward.
USD/JPY Daily Chart
Further downtrend could take USD/JPY to the next target at 148.24, the key September 2 high.
The Moving Average Convergence/Divergence (MACD) Momentum Indicator (blue) is moving away from its red signal line, which is bearish and has fallen below the zero line on an intraday basis. If it closes below zero, the downtrend of the indicator reading will increase.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
