USD/JPY is having trouble making new highs above 109.00, which is not surprising since the psychological handle has been serving as support or resistance for the pair for most of this week.
Will today’s consolidation lead to further downside moves for USD/JPY? As you can see, the current price also lines up with a descending trend line and 100 SMA resistance on the 1-hour chart.
A short trade at the earliest signs of bearish pressure would make for a good short-term trade especially if you’re only aiming for this week’s lows.
Feel like buying the dollar against the yen instead? You can also wait for a break above the trend line or maybe even the 200 SMA before you target previous areas of interests like 109.65 or 110.00.
If you’re not into dollar trading, then you’re gonna love the fact that CHF/JPY is sitting at an area of interest on the daily time frame.
The pair is trading juuust above 112.00, which is near Fibonacci retracement AND previous support and resistance levels. What’s more, stochastic is signalling CHF’s oversold status against JPY.
Buying at current levels would give you a good reward-to-risk ratio though you might want to wait for a bit of momentum if you’re not sold on 112.00 supporting the pair.
If you’d rather short the franc against the yen, then you’ll want to wait for a clear break below 112.00 and maybe target previous resistance areas like 110.00.
Good luck and good trading, yo!