Bears Heading for 101.42 on USD/JPY

The United States dollar versus the Japanese yen currency pair seems to be under bearish control. Do the bulls have a say until 101.42?

Long-term perspective
Since the price dropped under the 109.08 area, following the 109.85 peak, the bears governed.
Like so, after the bullish attempt to stabilize the price above the 107.00 psychological level, which ended only with crafting the 108.16 tip from where the falling line came into being, the bears did all they could to keep the price under the trendline.
And, as the series of lower highs and lows points out, they did a pretty good job. Even with all the bullish efforts, which after each low strived to draw an upwards movement, the quotes consistently respected the trendline and, thus, the descending trend continued.
The last of the bullish struggles is limited by the consolidation phase with the floor at 103.65 and the last high at 104.57.
Of course, the floor ceded, giving way until the — as of writing — 102.87 low. Noteworthy is that the 102.87 low is under the intermediary level of 103.15.
So, if 103.15 is recaptured by the bulls, then they could have yet another chance to change the current state of affairs. If they succeed or not remains to be seen, as only the invalidation of the falling trendline opens the door to 105.09 which, if conquered, exposes 106.12.
However, if 103.05 becomes resistance, then 101.42 is the next bearish target.

Short-term perspective
After the price slipped under the 105.27 intermediary level, it ebbed until the 103.65 firm support area.
The bulls made two attempts to invalidate the resistance of 104.44, but the bears contained the situation, as the 104.76, 104.75, and 104.57 highs of three separate false piercings point out.
As a result, the price went beneath 103.71, validated it as resistance, and declined until the 103.09 intermediary level.
As the bulls seem to have confirmed 103.09 as support, they may attempt to retake 103.71. However, if they fail to touch 103.71 or if 103.09 simply cedes at the second bearish test, then 102.41 is the next target.

Levels to keep an eye on:

D1: 103.15 105.09 106.12 101.42
H4: 103.09 103.71 102.41

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com