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17.01.2023 06:17 PM
The USD/JPY pair is trading at 128.50 at the time of writing. It's trapped between the 127.35 former low which represents a downside obstacle and the 129.56 historical level which stands as an upside obstacle.
The downtrend line represents a dynamic obstacle as well. As long as it stays below it, the USD/JPY pair could extend its downside movement.
Testing and retesting 129.56 and the downtrend line may announce a new downside movement at least towards 127.35. Dropping below this former low could open the door for a larger drop.
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