USDJPY smashed through a key support
01 December 2022
Yesterday’s dovish statement from Jerome Powell was a definite sell signal for the USD and on USDJPY it happened in a crucial place. The situation here changed a lot from yesterday and of course, changed for the worse.
Before yesterday’s speech from Jerome Powell, USDJPY was doing pretty well. The price was above the 139 support (green), which was a key level for the mid-term situation on this instrument. Dovish remarks from Fed Chair dumped the price and allowed to create a shooting star candle on a weekly chart.
Today, the slide continues, which is so far creating a long bearish body on the daily chart. We are way below the 139 resistance and on a good way to test the key, mid-term support on the 131 (orange), which is slightly below the 38,2% Fibonacci and represents the tops from May and lows from august.
With the current sentiment, the chances that we will get there are quite high. Negative sentiment will be canceled, when the price will come back above the 139 resistance but chances for that are now very limited.