USDJPY’s downtrend from 97.78 extended further to as low as 88.01 level. Resistance remains at the falling trend line from 97.78 to 92.53. As long as the trend line resistance holds, we’d expect downtrend to continue and deeper decline towards 87.12 (Jan 21 low) long term critical support is possible. However, a clear break above the falling trend line will suggest that a cycle bottom has been formed at 88.01 level on daily chart, then the following rebound could take price to test 92.53 key resistance.
For long term analysis, USDJPY formed a cycle top at 101.43 level on weekly chart. Further fall towards 87.12 to reach the next cycle bottom is possible.
