USDJPY Closes Gap (M)

The USDJPY has fallen even further since previous analysis which gave that scenario some potential and I now believe that move is at an end with today’s low of 110.98.
This move down has also closed a gap which can be seen on the monthly chart so let’s take a look.


The green highlighted circle denotes the gap which has now been closed. This doesn’t mean price can’t continue lower but it does help alleviate some concerns for the bulls that now don’t have to worry about it being filled.
The Bollinger Bands show this move down pushing into the lower band and I am now looking for a big bounce back.
I have added a few angles from both bullish and bearish Fibonacci Fans. 
The bullish fan shows the August 2015 low at support from the 23.6% angle while this current low is at support from the 38.2% angle. I favour this being the final low but if I am wrong then the 50% angle will be the next area of support.
The bearish fan which I have drawn from the 1998 high to 2011 low shows the recent high last year at resistance from the 76.4% angle while this low is back at support from the 61.8% angle. I now favour a move up to test the 88.6% angle which is substantially higher.
The RSI is oversold while the MACD indicator is bearish so caution is advised and stops should always be in place.


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