In the 4 hour chart as shown below, USDJPY is now testing important Kumo (cloud) resistance. At current levels, the price is at the 61.8% Fibonacci retracement of the decline from 110.66 to 107.31.
Short-term support is found at 109.25-109.05. If this area is broken downward we could see a rejection that could start the next leg down in USDJPY. Daily trend remains bearish as price is below the Daily Kumo and the downward sloping black Trend line as shown below.
Thank you for taking the time to catch up on my thinking…..
