Daily Timeframe: The reveals that price is currently being supported by a daily decision-point demand area coming in at 118.32-119.09. This support barrier does not look very stable in our opinion due to the recent attempts to break below here seen on the 16/02/15, 17/02/15, and on the 20/02/15. In the event that price does indeed close below here, we’ll then likely see renewed selling interest down to a daily demand area positioned at 116.86-117.54.
4hr Timeframe: Yesterday saw the USD/JPY break below 4hr demand at 118.73-118.95. Shortly after this however, price found support around the 118.61 mark and rallied north to test 119.00.
Selling from 119.00 does indeed seem a viable strategy, as the path appears to be clear down to at least 4hr demand at 118.32-118.54 (located deep within the daily decision-point demand area at 118.32-119.09). Nevertheless, by selling here you would effectively be selling into potential support from the weekly symmetrical triangle (see above).
Buying on the other hand would only be considered if price closed above and retested 119.00, as this would likely confirm buying strength from both the weekly triangle upper limit and the daily decision-point demand area (see above for levels).
Therefore, given the points made above, opting to stand on the side lines for the moment may very well be the best path to take.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).