themarketzone

Testing daily support - Below 200 SMA line

FX:USDJPY   U.S. Dollar/Japanese Yen
$USDJPY             finally reached the final target zone of the bearish Gartley I've posted here previously.
Both targets have been reached and now USDJPY             is testing a strong support zone - The top of a daily trading range (see yellow boxes).
Although Friday created a bearish signal by failing to climb above the 200 SMA line, it also generated an Outside Bar candle that can turn out to be a reversal pattern if the price will climb above its high (above 122.5).
The Outside bar candle isn't relevant unless your willing to risk 200 pips, so my focus is on the two nearest support zones - 120.5 and 120 (50% and 61.8% Fib levels).

Each one of these can become short term buy zone in USDJPY             .. but since the price is below two daily SMA lines, the potential upside is limited to 121.5 (at least as long as the price is below that level)

121.5 is potential sell zone for bearish continuation trade for those who want to trade USDJPY             to the down side.

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