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USD/JPY Price Analysis: Bears Seeking Downside Extension

Dollar bulls stepping aside and giving way to the yen. USD/JPY bears are looking for a close below current short-term structure. The price of the US dollar has taken a hit on Monday and might be expected to remain weak as markets get set for further US data in an oversubscribed short dollar positioning. Meanwhile, USD/JPY is offering a potential downside opportunity according to the hour chart as follows: 1-hour chart Following the correction and deceleration, traders can move down the lower time frames for a vantage point and to exploit any bearish structure and probable resistance that could potentially protect a stop loss. The bears are looking for a break of 10-min support and on a restest of it, the structure would be expected to act as resistance. This makes the structure an optimal place for entering the market protected with a stop loss above the structure.

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