USDJPY downtrend is clear - BBH

Research Team at BBH notes that the dollar broke down to JPY116.55 last week after finishing the week before near JPY118, but it happened at the start of the week. 

Key Quotes

“And for the rest of the week, the greenback consolidated at higher levels, spending practically no time below JPY117.00.  It appeared the dollar was tracing out some wedge of pennant formation, which is most often continuation patterns.  However, our reading of the technical indicators suggests that maybe it is not a wedge but a gradual grind lower.”

“The downtrend is clear.  It comes in near JPY117.65 at the start of next week and JPY117.50.  The technical indicators are consistent with a retest and possible break of JPY116.50.   The next target is in the JPY115.25-JPY115.50, which corresponds to retracement objectives and congestion area from earlier this month.”