USD/JPY: downside below 116.50 bias

USD/JPY is struggling and testing the 100 sma on the 1hr sticks albeit with a slight bid in the tokyo open, trading at 117.25 currently with a high of 117.33 and a low of 117.04.

The US dollar has been a strong performer of late after Trump's victory and the FOMC turning more hawkish than expected.

Analysts at Brown Brothers Harriman explained that the dollar broke down to JPY116.55 after finishing the previous week near JPY118, but it happened at the start of the week - and for the rest of the week, the greenback consolidated at higher levels, spending practically no time below JPY117.00.  "It appeared the dollar was tracing out some wedge of pennant formation, which is most often continuation patterns."

USD/JPY levels

Abalysts at Brown Brother Harriman explained that the downtrend is clear.  "It comes in near JPY117.65 at the start of next week and JPY117.50.  The technical indicators are consistent with a retest and possible break of JPY116.50. The next target is in the JPY115.25-JPY115.50, which corresponds to retracement objectives and congestion area from earlier this month."

There is more on the Yen within the following 2017 forecast: