MarketDeal24.Com – The USD/JPY pair failed to break 104 in a four-hour time frame on Thursday after five consecutive days of bearish conditions. 104 is Acting as resistance, sellers are now trying to move the price of the pair to support 103.21.
The bearish state of the four-hour time frame is also seen on the Daily Chart, where price broke support 104.06 on Wednesday and fell far below that level on Thursday. If the price declines further, the price will drop to weekly Quasimodo support 102.55.
In the weekly time frame, the weekly candlestick has formed an wedge pattern (106.94/104.18) since the price reached the underside of supply 108.16-106.88 in August. The above mentioned Quasimodo support 102.55 is shown in the chart, and if this level breaks then the focus will be in support 100.61. However, if the price recovers strongly from 102.55, the price may rise above the downward wedge pattern.
Below 104, bearish conditions could be created today and could target four-hour Quasimodo support 103.21.