By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 100.00 – 100.25
Take Profit Zone: 94.50 – 94.75
Stop Loss Zone: 103.00 – 103.25
The USDJPY has bounced higher after it contracted down to its horizontal resistance level as visible in this W1 chart. Price action is now centered around heavy resistance and the USDJPY experiences heavy congestion which could indicate a sizable move ahead. Fibonacci retracement levels are adding to pressures for either a breakout or breakdown form current levels.
The USDJPY has traded within a narrow range and traders should be prepared for the next move to be lower and back down to solid support levels. A combination of Japanese Yen strength and US Dollar weakness should assist the correction.