The Japanese yen has started gaining strength, but for how long will it last?
The immediate resistance level on the daily chart is @ MM3. Price broke through MPP after finding resistance @ 85.767, making a lower high. Immediate support on the daily chart is @ MM2 with the second support level @ MS1.
Resistance is @ the 50.0% fib retracement, an area that price bounced off from two days ago. The last time we tested this resistance level was December 21st.
Price has been making lower highs & lower lows since the 4th of January. An indication that Yen strength is finally kicking in. Resistance is found @ DR1 which is the 50.0% fib that predicts a 138.2 target. DM3 seems to be acting as our second level of resistance as price just bounced from there during Asia. I expect price to break out of the triangle to the downside making lower lows & lower highs as we are currently bearish. As a bear I look to short the next lower high.