USD/JPY was trading in a wide range during last weeks and formed a channel down pattern. The formation has 60% quality along with 45% magnitude in an 81-bar period.
The pair tumbled to the support around 81.37, and immediately rebounded to 81.64. The Stochastic indicator has not reacted yet on the price fall, while RSI indicator decreased sharply. If the pair bounces off the support level at 81.37, the short-term target for bullish investors could be around 82.05, in the middle of the present channel.
The pattern's support line strengthened after touching the 81.27 level. The present bias on 1H and 4H charts remains bearish, while indicators on 1D timeframe provide Buy signals. If the Pair breaks the support level at 81.27, the first target for short traders might be around 80.75.