The pair extended its recovery on Tuesday, opening the door for more strength to occur. On the downside, support lies at the 105.00 level, where a break, if seen, will aim at the 104.50 level. A cut through here will turn focus to the 104.00 level and possibly lower towards the 103.50 level. On the upside, resistance resides at the 106.00 level. Further out, we envisage a possible move towards the 106.50 level. Further out, resistance resides at the 107.00 level with a turn above here aiming at the 107.50 level. On the whole, USD/JPY -0.15% faces further upside pressure on recovery.
USD/JPY -0.15% 4-Hour price action appears capped by the previous support, which is now newly found resistance, at 106.00. Intraday sentiment favours below 106.00, potentially targeting additional downside support at 104.70, followed by the 104.07 and 103.22 levels. Alternatively, a confirmed breakout above 106.00 could target additional upside resistance at 106.74, which is the 200-period moving average, as well as the 23.6% Fib retracement from the Jan 5 move from 113.30 high to the current swing low at 104.70, and also the falling resistance . Only a confirmed breakout above the 106.74 level would change the intraday outlook, targeting additional upside resistance at 108.00 (38.2% Fib), followed by 109.00 (50% Fib) and, ultimately, 110.00 (61.8% Fib).
PART 2 OF THE TRADE
Now we can see a shallow pullback so we have a scenario and if that's the case and 106.00 important level holds we expect the second target at 107.800 to unfold as this we are watching now at 4hour chart timeframe will develop.
So if we can copy the AB and we create the CD to project our targets and we can see that almost coincides with the second target we had at 107.800!
1.Price is currently below 200EMA which favors the short trades.
2.Stochastics are in neutral area at 50 level signaling possible trend reversal and currently an even-handed war between buyers and sellers.
3. are above the price line both at 4H chart and .
ENTRY AT 105.450
STOP LOSS AT 105.200
TP1 AT 106.500
TP2 IF FIRST TARGET HOLDS 107.800 LEVEL
ENTRY AT 104.500
BUY STOP AT 105.500
TP3 AT 103.200
THANKS FOR SUPPORT!!
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