After retracing from last week’s downtrend, it appears the move lower may resume after finding resistance at 104.00.
I used a simple Fibonacci tool on the pair and it looks like the retracement got no higher than the 50% retracement level. Stochastics also show the the pair is at short term overbought levels giving us another indication that the pair may resume lower.
I am hoping that volatility will take the pair slightly higher for a better price to jump in. I’d like to short just below the 38% Fibonacci retracement level.
Short USD/JPY at 103.70, stop at 104.20, pt1 at 103.20, pt2 at 102.60
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Stay tuned…good luck and good trading!
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