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  • USD/JPY bears seeking a test of 104.05 and ultimately, downside extension lower. 
  • Upside correction completing on the hourly time frame. 

Overnight, USD/JPY played out in a typical reversal of London’s breakout.

USD/JPY was capped in an M-formation and moved back into consolidation within the Thursday’s Asian session’s ranges. However, the next round of selling could be about to emerge. 

The following is a top-down analysis that offers a bearish bias for both a near-term and longer-term outlook.

Monthly chart

Weekly chart

Daily chart

Daily support is around the bearish candle in the bullish impulse as first target. 

Hourly chart

There is a bias on the hourly charts to the downside in an extension of the latest bearish impulse with a naked Dec 7th session volume profile POC (point of control) located at 104.05.