USD/JPY Price Analysis: Bears move in and eye a significant correction towards 131.50
- USD/JPY bears are in the market and guarding the 133 area.
- Bears will seek a move to test the prior highs and the neckline of the W-formation.
USD/JPY has moved into a phase of consolidation near 132.90 and below 133.00 the figure that has served as a key area in the prior days of March. If the bears commit, then a correction could be on the cards and given the W-formation, this is a high probability. The following illustrates such a prospect on the daily charts:
USD/JPY daily charts
USD/JPY might be expected to return to the midpoint of the W-formation in the coming days where the neckline meets a 50% mean reversion and a 61.8% Fibonacci retracement level near 131.50.
USD/JPY H1 chart
The bears need to get over the 132.50s styructure and onto the backside of the hourly micro bullish trend as illustrated baove.