The picture has now changed on the pair with the clear break below 80,00 and even 79,50 (may low).
We are now bearish as long as 80,00 is resistance.
USD/JPY: daily chart
The USD/JPY has printed a new fesh low at 78,40. It has been a while we didn’t see such a momentum on the pair. Is it the sign of a bearish confirmation with a next target at 77,00 ?
From a technical stand and considering the breakout, it seems logical to have a bearish bias but looking at the 4-hour chart, we see that the market has bounced significantly overnight while drawing a nice hammer figure.
As a result, we might see a pullback towards former support at 80,00. If this level holds and the downtrend resumes, the breakout would be confirmed.