The USDJPY pair has been moving in the ascending channel since August last year, from which it broke down during the first session of year 2020. The price, overcoming the support of this channel, created a bearish engulfing formation on the daily chart. The day after, the falls continued and the price effectively left the formation by closing the session below the minimum of the “mother” candle. The MACD falls below zero, indicating bearish sentiment on this pair.
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Given the inflammatory situation in the Middle East caused by the killing of an Iranian general by American drones, there is a threat of the conflict turning into an open war. Because the Japanese Yen belongs to so-called “safe havens” – the probability of further drops in the USDJPY pair is very high.
The possible range of falls is the nearest demand zone in the vicinity of 107.15.
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