USDJPY: This is a key level
Major tug of war happening at this key juncture. The USDJPY is testing a key horizontal resistance and clear ceiling for the sideways range between 108-114.50.
The recent slowdown in upside momentum might be normal at this confluence of 114.50 horizontal resistance and the long term falling trend line. However, the level could be pivotal to the direction of the pair in the coming period.
The price could be forming a rising wedge amid falling momentum on RSI.
While all of the above technical reasons does not guarantee a reversal, it should be considered for a short position.
Trade with care
Best
Technician
The recent slowdown in upside momentum might be normal at this confluence of 114.50 horizontal resistance and the long term falling trend line. However, the level could be pivotal to the direction of the pair in the coming period.
The price could be forming a rising wedge amid falling momentum on RSI.
While all of the above technical reasons does not guarantee a reversal, it should be considered for a short position.
- Aggressive traders can go short with a stop above that resistance area, for good downside potential. With First quick target at 113.10, and a second target around 111.75.
- In the case that the price breaks and close a daily candle above 114.50, that would be another scenario and also can be traded to the upside. Targeting 115.50, then 118.00.
Trade with care
Best
Technician
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