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USD/JPY is slowly depreciating and has formed a Channel down pattern on the 1H chart. The pattern has 64% quality and 64% magnitude in the 181-bar period.
The pattern started when the pair bounced from 79.317 and slowed down at 79.236 after testing pattern's resistance band at 80.101 and 79.956. The SWFX market sentiments shows that almost 75% of the traders are expecting appreciation of the pair indicating that we might be seeing pair's bounce from support band. Long traders could focus on today's peeks at 79.334 and 79.400. If the pair breaches these levels next target could be set at daily resistance level (Fibonacci) at 79.488.
Technical indicators on aggregate point at a bearish market development on the 1H time horizon indicating that the pair might continue testing pattern's support band for some time. Short traders could set the first target at the lowest close price today at 79.160. If this level is breached, next target might be at the patterns support band and the todays low at 79.079.
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