USD/JPY Price Analysis: Bears are taking control and eye 135 the figure

USD/JPY bulls have thrown in the towel again and the focus is on a test of 135 the figure.
Bears are moving in on the 135.80 psychological support.

Ross J Burland FXStreet

As per the prior multi-timeframe analysis from the Tuesday New York session, USD/JPY Price Analysis: Bears are lurking and a significant correction could be on the cards, a topping formation was highlighted on the 5-min chart:

The price subsequently melted and the bear's committed to the M-formation on the 10-min chart as illustrated in the prior analysis:

If the bears commit at this juncture, then the 36.2% Fibo may be confirmed as a strong enough correction:

The 10-min chart's M-formation's neckline aligns with the Fibo, offering additional conviction to the downside case.

USD/JPY live market update

As illustrated, the price moved in for an accurate test of the target and surged higher from there before melting once again to print fresh lows of 135.68 which leaves lower levels, 135.00/10, as per the original analysis, on the cards for the sessions ahead:

The price is on the path to mitigating the price imbalance as illustrated don the hourly chart above, (PI) and thereafter, the demand area or order block, (OB) could be in the runnings for a test which exposes the risk of a break of the 135 psychological level if bulls do not commit. However, so long as they do, then the upside is still to play for longer-term.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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