USD/JPY analysis for February 07, 2020 – Watch for bigger drop on the USD/JPY and potential test of 109.00

Source: Forex Analysis

Technical analysis:

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USD/JPY has been trading sideways at the price of 109.80. Anyway, I found very good opportunity for the downside due to overbought condition and strong rejection of resistance during the Non- Farm Employment change.

My advice is to watch for selling opportunities and potential drop to 109.30 and 109.00

MACD oscillator is showing bear divergence and 4 pushes up with decreasing momentum, which is sign of weak buying.

Short-term resistance level is set at 110.00

Support levels are set at the price of 109.32 and 109.00

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