USD/JPY Depreciates

USD/JPY has been trading to the downside for the past week as the pair posted minor losses going from 113.60 to 112.45. The pair appears to still be going into the downside as the medium term sentiment remains bearish.

As the last trading day of the year closed yesterday, price would open at 112.65 to start the new year. Short-term sentiment is bullish with first bull target at level gravitating towards the double top at 113.60. If that level is taken out, USD bulls will try and push price to 114.70.

Above that the medium term trend would be changed from bearish to bullish. However, if the current sentiment continues to drive the price South, we should see the bear push the price towards major short-term goal at 110.80.

Chart: USD/JPY H4