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04.05.2023 04:04 PM
The USD/JPY pair crashed in the short term and now is trading at 134.38 at the time of writing. It has turned to the downside after failing to reach the 138.00 psychological level. Technically, after its strong growth, a downside movement was natural. The downside movement could be only temporary.
The uptrend line represents a downside obstacle, so as long as it stays above it, the currency pair could develop a new upwards movement.
Testing and retesting the uptrend line and stabilizing above it may announce a new upwards movement. This could represent a new buying opportunity. Only dropping and staying below the uptrend line invalidates the upside scenario.
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