JPY Trading Outlook (08-10-2015)

Medium Term Strategy: Forex Pair of the day

USD/JPY – shaping a triangle
The pair has broken below a rising trend line and is shaping a triangle pattern as the moving averages are turning down. Further weakness is therefore expected with 116 as a first target (horizontal support and August bottom) and 113.40 in extension (horizontal support). A third target is set at 110 (strong horizontal support and overlap). Only a rebound above the strong horizontal resistance at 122 would call for a trend reversal with a first alternative target set at 126 (June top) and 127.70 in extension.
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