04 January 2019 2:23
The beginning of the year is definitely super interesting! Yesterday we had some nice movements on the USD and Thursday brought us a flash crash on Yen. The Japanese currency was not the only one affected. AUD and NZD also witnessed volatile movements. The main reason for that is that the market was very shallow. Low liquidity can be a huge problem sometimes.
USDJPY dropped like a rock but we cannot say that it was unexpected. On USDJPY, the sell signal was present for a long time and was triggered by the bearish breakout from the symmetric triangle pattern and the breakout of the horizontal support on the 111.5. The negative sentiment is definitely feeling comfortable here.