E Drop In USD/JPY - Plain Observations

Well, looking at the daily perspective of the foreign exchange pair USD/JPY we can observe the one-time-framing higher behavior that occurred for several days. This trend has been broken with a drop lower today. With a close look, we can see the dip above the swing high back from April. Therefore we can conclude an absorption scenario that brought the market to lower "prices" now. A test of the previous balance area is probable. The Yen is often described as safe-heaven in uncertain times. It could be a signal against the USD Indexes such as ES which trending higher currently.

The hourly perspective broke with the drop a microbalance area s well and trades below that area right now. We could see some absorption around here or a move lower to an area of interest which would be around the mentioned prior bracket high. Let's see how this market will evolve here.

(Click on image to enlarge)

(Click on image to enlarge)

 

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