The USD/JPY pair failed to stabilize above the 131.03 former high which represented an upside obstacle. Dropping below the uptrend line signalled that the buyers are exhausted and that the sellers could take full control. I've told you in my previous analysis that the 129.04 former low stands as a downside obstacle.
Dropping below this level signalled a potential deeper drop. Still, in the short term, the price could come back to test and retest the 129.04 broken level before resuming its drop. Personally, I've drawn a downtrend line which represents an upside obstacle. USD/JPY could drop as long as it stays under this line.
USD/JPY Trading Conclusion!Breaking below 129.04 may signal a larger drop and represented a selling opportunity. Testing and retesting this level and dropping below 128.07 today's low could confirm more declines and could bring new trading opportunities.