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The USD/JPY pair increased a little in the short term after reaching the 127.14 level. Now, it's trading at the 128.13 level. As long as it stays under the downtrend line, it could drop deeper anytime again. Technically, the downtrend line stands as an upside obstacle.
127.14 previous low is seen as a downside obstacle. Personally, I'll wait for the price to break above the downtrend line or below 127.14 before I'll take action on this pair. Jumping and stabilizing above the downtrend line may signal that the downside movement ended and that the USD/JPY pair could develop an upwards movement.
Dropping and staying below 127.14 downside obstacle (former low) may signal more declines. This scenario could bring new selling opportunities.
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