16 April 2018, USD/JPY
Technical observation
USDJPY broke below a key support zone (107.80-106.99) with a big red candle, price then retraced to the zone twice before moving down, currently it is within the zone and I don’t expect a breakout above the zone but a rejection of price for bearish movements of price towards the key line 104.64.My advice, sell USD now with your take profit at 104.64 and stop loss around 109.45.In case of a breakout below 104.64,wait for a correction to it then continue short with USD.you can only buy USD in case of a breakout above the zone (107.80-106.99) with a big green candle and a correction to it.
Technical levels
Resistance levels
R1.107.89
R2.108.42
R3.109.59
Pivot
107.25
Support levels
S1.106.72
S2.106.08
S3.104.92
Trade signal
Sell USD now.