USD/JPY: trade recommendation
USD/JPY had a significant drop from the level of 102.16 in recent hours, which is currently located in the 500 EMA. On the H1 chart we can see that the USD/JPY is making a bullish retracement and now this pair is facing resistance at 101.58 level (38.2 Fibo level). However, this pair is likely to rise to the 50.0 Fibo level (101.69) to make a pullback and then fall again to support level of 101.23.
However, if the USDJPY manages to consolidate above the 61.8 Fibo level (101.80), it’s expected to rise to the level of 102.16, which could strengthen the current intraday bullish trend in the USD/JPY. However, the CCI indicator is showing a bullish divergence, which could indicate that this pair could make a pullback in the coming hours.
Trading recommendations: Place sell orders if the USD/JPY does a pullback at the resistance level of 101.80, with take profit at the support level of 101.23. Also, you can place buy orders if this pair does a breakout at the resistance level of 101.96, with take profit at 102.50.
Chart. H4 USD/JPY