Technical analysis of USD/JPY for 24/01/2019

Technical analysis of USD/JPY for 24/01/2019:

The market was rejected at 78% Fibonacci retracement, what's next?

Market technical overview:

The USD/JPY market has retraced 78% of the last swing down and made a local high at the level of 110.00 which now will act as a technical resistance level for the bulls. Since then the price has been trading sideways, but just above the trend line support. Any violation of this trendline will likely result in another leg down towards the level of 109.14 and the recent Bearish Engulfing candlestick pattern supports the bearish outlook.

Recommendations:

The bulls are too weak to continue the up move, so now it is time for the bears to take control over the market and push the prices lower towards the technical support at the level of 109.14. Please notice, that if the level of 109.14 is clearly violated, then the next target for bears is seen at the level of 108.70. The overbought market conditions and weak momentum support the short-term bearish outlook

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