FBS: trade recommendation for USD/JPY
Tatiana Norkina, FBS analyst
The pair has failed to find today a foothold above the 104.00 figure. Yesterday’s breakdown of this level was followed by a drop to support in the 103.80 zone. Then the bulls once again tried to restore the course. However, under pressure from the Dead Cross on H1 the market began sinking and has already renewed yesterday’s low sliding to 103.75.
Ichimoku indicator. This layer is formed on H1 by Tenkan and Kijun. So the bears can get stuck here for the whole day. If support can’t stand, by the end of the day the pair may test the lower boundary of the Cloud in the 103.40/103.50 area.
On H4 the powerful support is around 103.80 – this is a horizontal Tenkan-sen. At the same time, note that Tenkan-sen is the weakest in the set. Therefore, the breakdown of this level could trigger a new sale of a currency pair to the 103.00 figure.
Technical levels: Support - 103.40, 103.50, 103.75; resistance - 104.00 / 104.15.
1. Buy - 103.50; SL - 103.30; TP1 - 104.00; TP2 - 104.15.
2. Sell - 104.10; SL - 104.30; TP1 - 103.50; TP2 - 103.10