Technical outlook and chart setups:
The USD/JPY looks to be setting up for a correction into 105.20/30 levels at least before rallying higher towards fresh highs. Please note that 105.20/30 is also resistance turned into support as depicted here on the daily chart view. The USD/JPY pair has has potential to push through 110.00 levels and higher as well, but a meaningful correction could be due for now. Immediate support is seen at 106.20/30 (fibonacci), followed by 105.20, 103.00 and lower, while resistance is at 109.40/50 (interim) for now. It is recommended to remain flat for now and initiate long positions on a dip. Aggressive trade setup is to initiate short positions now, risk remains above 109.50.
Trading recommendations:
Aggressive trade setup is to go short now (108.60), stop above 109.50, target 105.40/50.
Conservative trade setup is to remain flat, look to buy lower around 105.20/30.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
