Weekly Outlook 31st December - 4th Jan - USD/JPY
Having a look a the bigger picture on the 4hr and daily I have closed the Long Trade I had.
Looking at the Daily there potentially is a further drop of around 50 pips before we could see price rally up.
When price last tested the 109.800 level price had a larger 475 pip move to the upside. This zone was rejected instantly the first time it was tested and due to this it does offer the best area to get long.
I have highlighted the 112.200 level as a first target as this is where price could see some resistance. On the 4hr you will see that there was some sideways movement before the drop from this area.
I will set an order 5 pips before the the zone and stops will be 5 pips after.
Looking at the Daily there potentially is a further drop of around 50 pips before we could see price rally up.
When price last tested the 109.800 level price had a larger 475 pip move to the upside. This zone was rejected instantly the first time it was tested and due to this it does offer the best area to get long.
I have highlighted the 112.200 level as a first target as this is where price could see some resistance. On the 4hr you will see that there was some sideways movement before the drop from this area.
I will set an order 5 pips before the the zone and stops will be 5 pips after.