USDJPY -0.01% has slid below strong support 7 & 21 DMA levels decisively on Wednesday's trade session as markets nudges trade wars tormentor.
The pair is currently extending its gains bearish sentiments, the current trend spikes through rising channel , but bears resume exactly at channel resistance and nudge prices below 21DMAs, more slumps likely on breach below channel support as both leading oscillators indicate bearish momentum while articulating (on daily charts ).
On major trend, bulls have exhausted on the occurrence of gravestone doji , consequently downtrend resumes (refer weekly plotting), more slumps likely on overbought pressures on this timeframe as well.
On the flipside, the major trend has been in consolidation phase but turns little bearish for now, but 21-EMA likely to act as the major support. We see bullish invalidation on retrace below.
Overall, we could foresee scope for further downside traction. While trend indicators ( MACD ) is also substantiating the similar bearish swings to prolong further.
Trade tips: On every deceptive rally, it is wise to initiate shorts via buying ATM put options for the TP: 111.684 levels with strict SL: 112.412 areas.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -8 (which is neutral), while Hourly JPY Spot Index was at 85 ( bullish ) at 07:06 GMT
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