Nikkei is down 3.7% today.

So far during Asian hours, the trend is very strong – Strong YEN, weak AUD, strong EUR …

Naturally USDJPY has been down all day, and came to the Double Bottom on H4.

The price touched 55EMA yesterday.  So 21EMA -> 55EMA -> Double Bottom scenario could be valid so far.

Thus I would like to see some rejection from Double Bottom, at least up to WPP area.

However, the speed of the drop is so fast that the price may just continue to go down and break Double Bottom zone.

If that’s the case, you know what to do, right?

Yes, let’s sell again from Role-Reversal Resistance (116.50-60).

 

In any case, we must focus on the price action on the smaller timeframe.

 

YJ Baik – Forex.Today @ Tokyo