USD/JPY Shows its Not Ready to Bottom

• 4H and 1H: The USD/JPY pair has been declining as expected. The target is 88.30, suggested by a negative reversal in the daily time-frame. You can refer to any of the recent USD/JPY updates to see this projection.
• We are already in this development, and the decline  has been sharp. For the 1H and 4H charts, it has gone to oversold levels, which confirms the bearish outlook, but suggests we may have a correction.
• That is what the current 4H chart shows – a market in oversold conditions. Price action also shows possible bottoming here around 89.50.
• However, as we check the internals in the 1H chart., we see that near-term momentum has not exhausted yet. There is a negative reveral suggesting ruther decline. A negative reversal is when the RSI makes a higher high, but price makes a lower high.
• Not shown here, but the projection suggested by the negative reversal in the 1H chart is 89.05.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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