DeGRAM | USDJPY correction 📊 Technical Analysis
● Monday's rebound above the 4-month falling trend line was quickly repelled, leaving a “false breakdown” candle; price has returned under the line and is now retesting it as resistance around 144.65.
● The rebound also stopped at the top of the triangle and a small bearish flag formed; the height of the pattern points to the 142.80 support band and the broader channel to 139.90 as continuation.
💡 Fundamental analysis
● Softer U.S. core GDP data drove 2-year Treasury yields to two-week lows, reducing the rate differential that favored the dollar.
Meanwhile, Japanese officials again warned that they “do not rule out any measures” against excessive yen weakening, raising the risk of intervention and discouraging new long USD/JPY positions.
Summary
Short 144.4 - 144.65; break below 143.8 targets 142.8 -> 139.9. Bearish view loses strength with a 4-hour close above 145.30.
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