ICmarkets
Short

Looking for shorts around the 103.22/103 region

FX:USDJPY   U.S. Dollar/Japanese Yen
99 0 3
As we moved into yesterday’s US session the USD/JPY             pair came alive! A strong wave of bids flooded the market, consequently consuming the H4 resistance at 101.40 (now acting support) and ended the day touching gloves with the psychological number 102. Beyond 102, we can see that there’s a nearby H4 supply found at 102.83-102.43, followed closely by the 103 handle/weekly resistance level at 103.22.

In that the pair seems to be in the process of chalking up a nice-looking H4 AB=CD bearish pattern (see chart) which terminates just ahead of 103, shorting this handle (given the predominant bearish trend price is in and the bolstering weekly resistance level) is certainly something that interests our team.

Our suggestions: Watch for the market to close above 102 today. From here, we’d then be looking for a fakeout above the overhead H4 supply at 102.83-102.43, into the 103.22/103 region, which as you already know, sports a H4 AB=CD completion point! Despite the confluence seen around this sell zone, waiting for lower timeframe confirmation is still required (for us), due to the possibility of a fakeout into the daily resistance area lurking just above at 103.50-103.89.
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