USD/JPY: downside possible

The yen has been correcting back and it has now reached a 61.8% Fibonacci of the previous move. My preference is for more downside given the incomplete wave sequence down from the March highs. A break below the 76.4% Fibonacci line at 78.36 would see the bears back in control and an eventual target set at the 77.66 lows. Alternatively a rally would see a move up to the cluster of resistance at 79.45, before a possible continuation to the 80.60 highs.

Written by Forex4you