Despite the pair’s rebound from the descending trend line support last Friday, the subsequent failure at 113.78 earlier this week followed by a retreat to 112.70 today has set falling tops formation.
A daily close below 112.61 (last Friday’s low) would mark falling bottom and open doors for a test of 111.90 – 111.61 levels.
It can be observed that USDJPY is being resisted at a strong horizontal resistance level and from the rising trendline which it broke a while back.
Look to short at Current market price or at 114.03
Target: Next support which conincides with 0.5 retracement of the uptrend
Stop: 114.38
USD/JPY the most favorite trade now a days globally accumulating targets 107.50.
Technical :
This pair is little influence with technical but support and resistance matters in this pair in terms of technical .apart from it we are looking for channel as I have nicely mapped over daily but for short term trader I have marked it with 4 hr chart with recent channel...
It has been observed that a penant which had formed after a strong upmove has been broken on the USDJPY pair.
Now it shall move further upwards.
Long at: 114.46 to 114.50
Stop: 114.20
Target: 115.00 & 115.19 towards the upward channel resistance
