USD/JPY: trade recommendation
By Felipe Erazo
The USD/JPY found resistance at 61.8 Fibo level, which coincides with the 500 EMA, so this pair began falling again from that level and now the USD/JPY is again trying to consolidate below 101.84 level. If the USD/JPY does make a breakout in the support level of 101.60, the next target would be the 101.08 level in the medium term.
On the other hand, as we see in the H1 chart, the USD/JPY could perform a bullish rebound at current levels, although it should be noted that this pair could be forming a head and shoulders pattern below the 61.8 Fibo level, so the bearish outlook could stay alive for several more days. The CCI indicator shows no divergence.
Trading recommendations: Place sell orders if the USD/JPY does a breakout at the support level of 101.47, with take profit at 101.08. We don’t recommend to put buy orders at the moment, because there are no clear bullish patterns.
Chart. H4 USD/JPY