USD/JPY: trade recommendation
The USDJPY has made a retracement below the 61.8 Fibo level at (the 101.62 level), which could begin a strong bearish trend in the short term, but remember that this pair could perform a bullish rebound at current levels and climb back to the resistance level of 102.26, where the 500 EMA on the H4 chart is located.
If the USDJPY does make a breakout in the support level of 101.45, it’s expected to fall to the level of 101.23, which would invalidate our bullish outlook for this pair. On the other hand, keep in mind that the CCI indicator is showing a bullish divergence, which could strengthen the current bearish bias in the USDJPY.
Trading recommendations: Place buy orders only if the USDJPY does a breakout at the resistance level of 101.75, with take profit at the 102.26 level.