Technical observation
For the past days, USD/JPY established a resistance zone at 112.69-112.60 with several retracement to it. Recently price retraced to the above mentioned zone for the fourth time and still could not penetrate above it.I sold USD within the zone and I’m looking to remain in the trade with my take profit at 111.65 and stop loss around 113.15.As long as price remains below 112.69-112.60, I expect nothing but bearish momentum. On your way downwards, the key lines to look for include, 111.65, 110.66 and 109.83.Should there be a clear breakout above 112.69-112.60 with a big green candle, wait for a pullback to it before you buy USD.
Technical levels
Resistance levels
R1.112.37
R2.112.5
R3.112.7
Pivot
112.31
Support levels
S1.112.18
S2.112.11
S3.111.91
Trade signal
Remain short towards 111.65.
Origin: FreshForex
