USD/JPY Potential short term, short setup...

FX:USDJPY   U.S. Dollar / Japanese Yen
Following on from my Forex Market Breakdown Volume 5, price seems to be following suit.

We continue to consolidate between hourly support and resistance sitting between 111.756 - 111.980. Previously short term support was broken and retested and price formed a potential short setup from this zone. However, this turned out to be a fake out and since then price has taken another dive into resistance although this doesn't look overly convincing.

We now sit at the 5th rejections of resistance following a strong bearish engulfing candle.

It is also important to mention the higher time frame confluences on this pair, 112.000 being a strong weekly level also coinciding with alternate weekly confluences which I will keep to myself. I have also marked on a strong daily level between 111.360 and 111.5000 highlighted by the blue zone. I believe this level will be retested and therefore this zone sits as my downside target.

With this in mind, we must firstly see a strong break below the hourly 50ema and hourly support zone . 111.756 sits as my first downside target and once broken its all eyes on 111.500.


Trade closed: target reached