The USD/JPY exchange rate has been slipping since the beginning of this week. Previously, however, we witnessed an upward movement (ab), in which the quotations set new highs and lows.
In view of the above, the current decline can be considered as a correction, which reached the first support around 111.00, where is the abolition of 38.2% of ab. The return of buyers on this support would give a chance to retest this year’s maximum at 112.13.
However, if the session on the daily chart is closed under 111.00, it may turn out that sellers will direct price to the next support zone at 110.51 – 110.36 (elimination of 38.2% of AB traffic and 61.8% of ab traffic). Only overcoming this area would question the potential of further growths.
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