Red lines- bullish channel
Blue line- resistance
Blue rectangle -support (broken)
USDJPY is trading around 141.90. A few days ago we warned bulls that although price was trading inside the bullish medium-term channel, price behaviour was bearish and USDJPY was vulnerable to a move lower. It was expected by our analysis that USDJPY were to move towards the lower channel boundary. Price today broke below the horizontal support of 145.20-145.50 and has already lost more than 300 pips. On November 4th analysis we warned that price was vulnerable to a move towards 140. We expect USDJPY to find support at the lower channel boundary.