The US dollar versus the Japanese yen currency pair seems to be set for 103.15. Is this really so?
After it peaked at 109.85, the price fell under the resistance level of 109.08, extending all the way to 106.07 before crafting the next peak at 108.16, slightly above the 108.05 intermediary level.
From the 108.05 peak, the price developed the oscillations in such a manner that it formed a descending trend, one that stopped a hair away from the 103.15 intermediary level.
From there, a decisive rise took shape, but it only managed to note a high, 105.67, which was followed by a sharp decline. Thus, the descending trendline held its ground.
Even more, the descending trendline, alongside the 105.09 level, is part of double resistance.
The fall from 105.67 extended until the 103.65 low, and the aftermath of the rise lost its steam. As a consequence, the expected scenario is the continuation of the fall, targeting 103.15.
However, given that the 103.65 low is a higher low compared to the previous one, the bulls could still be entitled to try another push towards 105.09.
The 105.67 top denotes the false piercing that came about after the rally from 103.09. As a result, the price ebbed under the 104.44 firm area and continued until the 103.65 low.
From there, another rise appeared, sending the price above the double resistance area noted by the upper line of the descending channel and the 104.44 level. This is how 104.76 was formed, a peak which, similar to 105.67, is part of a false piercing.
As a result, as long as the price oscillates under the double resistance area, the expectations are for the fall to continue, targeting 103.09 and setting an intermediate profit booking area at 103.65.
However, if the double resistance gives way that the bulls can eye 105.27.
Levels to keep an eye on:
D1: 103.15 105.09
H4: 104.44 103.09 105.27
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