• USDJPY reversed from resistance zone
• Likely to fall to support level 109.00
USDJPY currency pair recently reversed up from the resistance zone lying at the intersection of the key resistance level 110.00 (which has been reversing the price from the end of April) and the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily bearish engulfing chart pattern – which stopped wave 3 of the previous intermediate impulse wave (3).
Given the improvement in the yen sentiment seen across the currency markets today – USDJPY currency pair can be expected to fall further toward the next support level 109.00 – followed by the support level 108.50 (low of wave 2).