28 Mei 2018, USD/JPY
Technical observation
USD/JPY broke above a resistance zone 109.04-108.27 then went up. Currently price is pulling back to the broken zone and I don’t expect a breakout below it but a rejection of price from it for possible bullish movements towards the resistance line 114.03 and a breakout above it for a further rise in price towards 121.13. I would advise you remain flat temporarily and wait for a rejection of price within the zone then long the pair. Right now only long positions look ideal and can be recommended. Short positions can only be advised in case of a clear breakout below 108.27 with a big red candle and a correction to it.
Technical levels
Resistance levels
R1.110.87
R2.112.36
R3.114.8
Pivot
109.91
Support levels
S1.108.43
S2.107.47
S3.105.02
Trade signal
Remain flat temporarily.