Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

USD/JPY: Likely to correct down to 123.00

By: Dima Chernovolov

  • USD/JPY reached buy target 124.00
  • Likely to correct down to 123.00

USD/JPY has been rising sharply in the last few trading sessions – in line with our previous report for this currency pair. The pair previously reached the resistance level 124.00, which was set as the buy target in our previous report for USD/JPY. Given the strength of the resistance zone surrounding the resistance level 124.00 (strengthened by the upper daily Bollinger Band and by the resistance trendline of the daily up channel from December) - USD/JPY is likely to correct down toward the next support level 123.00.

The probability of the downward correction is also increased by the fact the daily RSI and Stochastic indicators are both moving in the overbought areas.

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