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USDJPY – bearish engulfing on channel support – 06.01.2020
The USDJPY pair has been rising since August of last year, which crashed in the first session of 2020. The price broke the support of this channel and formed a bearish pattern on the daily chart. The next day the declines continued and the price successfully broke out of the situation and closed the session below the low of the "mother" candle. The MACD is falling below zero indicating bearish sentiment for this pair.
With the conflagration in the Middle East triggered by the assassination of an Iranian general by American drones, the conflict risks degenerating into open war. Since the Japanese Yen is the so-called “safe haven”, the USDJPY pair is very likely to fall. A potential downside area is the area of interest near 107.15.
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