Aggressive dollar / yen sellers back to the market

Drawing attention to the 4 hours chart, you will notice that a sufficiently long period of time auctions are held in the downward triangle. It is believed that the formation of a descending triangle shape, usually ends with a breakdown of its lower boundary.

USD / JPY

At the same graph, we see that in the FX market returned aggressive sellers of dollar / yen and is currently the exchange rate is testing the lower boundary of the triangle, which is a strong level of support 88.70/60.

Now look at the indicators:

Current price level is below the moving averages with periods of 34, 55, 89 and 144, which are directed downward and point to the continuing bearish sentiment.

The MACD histogram is located in the negative zone, began to decline in the near future may cross its signal line downwards, and thereby generate a signal to sell the dollar / yen.

Stochastic Oscillator is in the neutral zone and has already formed such a signal, since the beginning of the% K line falls below the% D.

Therefore, as a confirmation that the forex market would be exacerbated bearish sentiment, we can only wait for the breakdown of the lower boundary of the triangle, and then will open the path to levels of 88.00 and 87.80/60.

Resistance Levels: 89.00, 89.30/40, 89.70, 90.00, 90.20, 90.40/50

Current price: 88.63

Support levels: 88.60, 88.40, 88.20, 88.00, 87.70, 87.50