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25.05.2022 07:12 PM
USD/JPY: more declines possible

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USD/JPY Temporary Growth!

The USD/JPY pair registered strong growth in the short term after reaching the 126.49 level. It was traded at 127.48 at the time of writing below 127.93 former low which represents an upside obstacle.

Also, the downtrend line represents a dynamic upside obstacle (resistance). In the short term, it could come back to test and retest these levels before dropping deeper. As long as it stays under the downtrend line, the USD/JPY pair could drop again.

USD/JPY Trading Conclusion!

The current growth could be only a temporary one, it could only test and retest the 127.93 and the downtrend line before developing a new downside movement. The rebound could help the sellers to catch a new drop.

Only jumping and stabilizing above the downtrend line may signal further growth in the short term.

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