If we can ignore the fundamentals and rely entirely on technical analysis, USD/JPY has made a key breakthrough and is likely to fall with 18.54%. In the last two years, the pair seemed to have entered lethargy, forming a triangular formation. Nearly three weeks ago, on January 25, the price broke the lower diagonal of the triangle, but investors were still trading the pair timidly. What is at the moment capable of exacerbating the negative sentiment is that we have a breakthrough in basic horizontal support, after which the price "hangs in the air". The essence of the triangular formations suggests that the movement after the breakthrough is at the height of the left vertical wall height. In this case, the height of the left side is 20 JPY or a decrease of 18.54% of the breakthrough.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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