Time Frame : 4H
BIAS – Bearish
Since 2018-01-10 after UJ broke out of the Range we’ve seen it form a downward channel till present. Last week Price attempted to break this channel and was rejected at the 0.236 fib level.A break of the lower fib 0 ( 105.266) which has been tested thrice already will hint a decline to 104.00-103.500. A rejection at the lower fib will signal a bull move back to previous highs 107-108.000
With the upcoming interest rate decision on Wednesday.
We could see a clear direction of price then.
Consumer sentiment in Japan has changed. Japanese gov. has explained that consumer prices are rising moderately after not to long ago they said prices were flat and they also quoted that the economy is gradually recovering.
With EJ inflation figures came out lower than expected from Eurozone so this combined with the Japanese gov updated comments helped contribute to drop in pair too