FBS: trade recommendation for USD/JPY
Tatyana Norkina, FBS analyst
Yesterday the bears managed to break below support at 107.90 and pull the pair down to the 4-week minimum at 106.70.
Ichimoku indicator. On both timeframes the indicator shows that the bears are determined for more downside.
Thus, on H1 Tenkan and Kijun formed a new Dead Cross, while the Cloud is becoming more bearish, extending down.
On H4 the Cloud is changing from bullish to bearish mode. This is happening while the pair’s trading in negative territory, under the influence of the Dead Cross.
As a result, the pair may test and support at 106.50.
Technical levels: Support - 107.00, 106.50; resistance - 107.30, 107.90.
1. Sell - 107.30; SL - 107.50; TP1 - 106.50.