The USD/JPY pair has broken out of the channel it has been trading inside and sold-off down to the monthly pivot at 78.05. It has broken just below the pivot and it may continue even lower. The expected downside target from the channel breakout is 77.30 – although the June lows at 77.65 could be a closer possibility. There may be a slight rebound to resistance at 78.20 first, before a deeper sell-off takes hold and draws the exchange rate down again.
Written by Forex4you