FBS: trade recommendation for USD/JPY
Tatyana Norkina, FBS analyst
USD/JPY tested a strong resistance at 110.00 yesterday. A double test of this level revealed increasing bullish weakness.
ichimoku. As a result, the Ichimoku setup changed on both timeframes. The H4 Tenkan and Kijun lines canceled the golden cross and are going to form a dead one. The Cloud is narrowing. Correction could target the 107.90 mark.
On the H1 chart prices fell below the Cloud. There is an active dead cross. The bearish Cloud is pulling the market players to sell the pair. At the same time, Chinkou Span is lying in the overbought zone. Further decline of the pair could extend after a small corrective recovery to Tenkan-sen.
Technical levels: support – 108.10, 108.60; resistance – 109.00.
Sell — 108.90; SL — 109.10; TP1 — 108.60; TP1 — 108.10.