Trading Idea USD/JPY

Yesterday we had a sell recommendation on USD/JPY.

Price reached a low of 106.96, just 1 pips above our target. The bounce off the low does not look strong. We think there could be further downside if the neckline at 106.95 gives way. It could go as low as 105.43. There is also a previous price support at 105.65. Price could be heading towards this support zone. The rally up took 5 weeks. The decline could take between 2.5-3 weeks to reach 105.65.

20EMA resistance point at 107.50 should cap any rally. That could be a good location to get into a short position. Stop should be placed at 108.15.

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