GENERAL OVERVIEW: The currency pair tested is lower on the day and is threatening a larger move lower as the bank of Japan gets a set to meet with their latest interest rate decision. All things being equal, the exchange rate will most likely continue to edge lower during the following trading sessions. We can see that the pair is falling with lots of negativity in the market. The bears are creating the negative momentum in the market .the pair remains in the downside level for 153.50 supports first. The bears are becoming aggressive in the market and suggest the sellers to go for the selling side. The current selling level of the market is 154.00.the chart suggest seller to follow the deeper declines. We can see that market is making descending line which suggest for sell side.
REASON & ANALYSIS: The technical view describes the falling phases of the market. The market is forming lower lows and higher lows in the market. A breakout through the lower boundary of a descending channel pattern could occur. The bears are looking to stamp their authority on the market.
On the daily chart we can see that head and shoulder pattern is forming which denotes the bullish to bearish trend reversal signals .the pair is falling to get below the 50-day moving average and this has the potential to see further looses in this pair.
The RSI is below the 50 level showing bearishness in the market at the 35.55 level .The MACD indicator showing its strong bearish signals as it following the bearish momentum in the market.
OUR RECOMMENDATION: From all the above conclusion we can say that bears can enter in the level 154.67 target will be 154.00 ,153.50 and the stop will be 155.00.
