USDJPY How to Trade

USDJPY How to Trade

U.S. Dollar/Japanese Yen
FX:USDJPY

DLavrov

The price bounced from a support zone formed by SMA50, SMA100 and 108.00 support level . RSI confirms the price reversal in the oversold zone. MACD histogram supports further upward movement. We could buy above 110.00 level but the weekly timeframe looks bearish – RSI reversed not far from the overbought zone and MACD histogram supports the downward movement. Also we got the price reversal from the weekly downtrend line. For buying it’s better to wait for a breakout above this line. If we look at the daily timeframe , we can see a bearish divergence and MACD lines which support the downward movement. We can open short trades based on a breakout below the support zone . Stop orders for short trades must be placed above the local swing high. The main profit target should be at 105.00 support level .
Source: TW DLavrov

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