USD/JPY Price Analysis: Bears seeking downside extension
|- Dollar bulls stepping aside and giving way to the yen.
- USD/JPY bears are looking for a close below current short-term structure.
The price of the US dollar has taken a hit on Monday and might be expected to remain weak as markets get set for further US data in an oversubscribed short dollar positioning.
Meanwhile, USD/JPY is offering a potential downside opportunity according to the hour chart as follows:
1-hour chart
Following the correction and deceleration, traders can move down the lower time frames for a vantage point and to exploit any bearish structure and probable resistance that could potentially protect a stop loss.
10-min chart
The bears are looking for a break of 10-min support and on a restest of it, the structure would be expected to act as resistance.
This makes the structure an optimal place for entering the market protected with a stop loss above the structure.
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