Bears Impatient on USD/JPY from 103.65?

The US dollar versus the Japanese yen currency pair seems to be under some serious bearish pressure. Do the bulls still hold a chance?

Long-term perspective
After falling from the 109.85 peak beneath the firm level of 109.08, the bears seized the opportunity and directed the situation on their desired path, thus crafting a descending trend.
The descending trend can be seen starting from the 108.16 high. The high is part of the false piercing of the 108.05 intermediary level — an event that halted the bullish recovery efforts that started from the 106.07 low.
At the same time, the 108.16 high is the origin for the trendline that convincingly played the role of resistance, as it contained and swiftly shifted any bullish endeavor. The trendline also aided the formation of double resistance areas, alongside 106.12 and 105.09, which further helped the bears
The latest low — 102.87 — is a lower low that highlights the false piercing of the 103.15 intermediary level. Thus, the bulls may be entitled to believe that they are finally putting the bears into their place.
However, the fact that the price turned around from the area of the previous low, 103.65, respectively, endangers the bullish opportunity.
So, if 103.65 becomes a resistance area, then the price is to revisit 103.15. Once there, if the bulls are not able to quickly print a bottoming pattern, then the bears could pierce the intermediary level of 103.15 and define a new lower low. Once this happens, the path to 101.42 is open.
On the other hand, if the bulls bottom at 103.15 or stop the fall in its tracks, then they could set 103.05 as support. If this turns out to be the case, then the trendline could be the first profit booking area, followed by 105.09.

Short-term perspective
The fall from 104.57 extended to as low as 102.87. Both are false piercings, of 104.44 and 103.09, respectively. Thus, the latter assisted the bulls, which touched 103.71 and even passed it for a short while, without capturing it.
So, if 103.71 remains elusive, then 103.09 is the next bearish objective, followed by 102.41. On the flip side, if 103.71 becomes support, then a rise would target 104.44.

Levels to keep an eye on:

D1: 103.65 103.15 101.42 105.09
H4: 103.71 103.09 102.41 104.44

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