USD/JPY has recently broken down through the strong Key Support level 79.22 identified recently by Autochartist on the 4-hour charts. The Significance of this Key Level is rated at the 8 bar level which corresponds to the 8 recent price reversals from this support. The Breakout of this Key Level continues the strong downtrend visible on the daily and the weekly USD/JPY charts. More specifically, this Key Level breakout follows the recent completion of the short-term daily ABC correction to the preceding sharp daily downward price impulse. Point C on the chart below marks the end of the C sub-wave of the aforementioned ABC correction which formed when the pair reversed down (with the daily Evening Star Japanese candlestick pattern) from the combined resistance area made out of the 38,2% Fibonacci Retracement of the preceding sharp daily downward price impulse from the March of this year as well as the daily upper Bollinger Band (as is shown on the second chart below). USD/JPY is expected to fall further toward the Forecast Price 78.4950.
The daily USD/JPY chart below shows the technical price levels mentioned above:
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