Yesterday the pair tore through support in the 94.00 area.  A drop of that magnitude was not expected – the pair had almost a 300 pip move!

The drop does signify a longer term down trend is about to begin with the target being 87.00.  Intermediate support is expected between 90.00 and 89.50.

Currently the pair has bounced off the lows at 91.80 and is trading at 93.18.  A successful retest of the 94.00 level, where price try to test this level and then retreat once again will confirm the breakout.

Want to learn more about chart patterns or other forex and stock market trading methods?  Check out my Trading Courses page.

Source: Forexyard, USD/JPY Daily Chart

Please read the latest How to Use the Trade Ideas blog if you have questions. If you still have questions after, feel free to comment

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

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