01 Juni 2018, USD/JPY
Technical observation
Yesterday USD/JPY retraced the broken support zone 109.04-108.80, it could not penetrate above it and was rejected. Currently price is within the zone and i expect either a breakout above 109.04 or a close within the zone to trade the pair. I would advise you remain flat temporarily and wait for either a breakout above 109.40 or a close within 109.04-108.80 to enter a trade. If price closes within the zone, short USD/JPY with your take profit at 106.74 and stop loss around 109.76,in case there’s a clear breakout above 109.04 with a big green candle, long the pair with your ideal target at the resistance line 111.06.
Technical levels
Resistance levels
R1.109.62
R2.109.85
R3.110.32
Pivot
109.43
Support levels
S1.109.14
S2.108.89
S3.108.41
Trade signal
Remain flat temporarily.
101% Double the volume