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  • USD/JPY has dropped 0.25% on Thursday as the dollar struggles today.
  • There are some good support levels below the current price level of 107.25.

USD/JPY 1-hour chart

USD/JPY has been dropping steadily throughout the session and broke the previous wave low of 107.24. This makes a new lower low lower high formation on the hourly chart after the previous wave low was a resolute support zone.

The key feature on the chart is the Fibonacci confluence zone at the 61.8% retracement and 161.8% extension zone. If the price continues to move lower it would be a good level to watch out for. The JPY pairs often respect the Fibonacci numbers well and the aforementioned level looks strong. 

Looking at the indicators, the Relative Strength Index is looking very bearish. The indicators is below the oversold zone and this means there could be a small retracement before the price continues south. The MACD histogram is also red and the signal lines are below the zero point compounding the bearish signals. 

On the higher timeframes, the price has been in a painful sideways range. Let’s hope the market shakes up a bit and some trends start developing. 

USDJPY harmonic pattern

Additional levels