FBS: trade recommendation for USD/JPY
Tatyana Norkina, FBS analyst
The currency pair rushed to new highs after a short-term consolidation. The exchange rate rose by more than a figure and extends growth today: bulls recovered to 108.80 and are getting ready to test 109.00.
Ichimoku. 109.00 mark is a strong resistance on the H4 chart. Given the overbought market conditions, we expect a bounce lower from 109.00. However, it's risky to sell the pair in these conditions: Ichimoku indicator is giving out bulish signals.
Technical levels: support – 108.35, 107.90; resistance – 109.00.
1. Sell —109.00; SL — 109.20; TP1 — 108.35.