The current technical pattern signals a possible correction of the USD/JPY currency pair after a continuous rally over the past two weeks. The "greenback" is under pressure due to the negative dynamics of the US government bonds yield. In a trading instrument, a classic reversal formation has been formed – the price and MACD histogram divergence (H1 timeframe). At the moment, the USD/JPY currency pair is consolidating. The safe haven currency is testing local support of 111.350. We recommend paying attention to this situation.
If the price fixes below 111.350, you need to look for entry points to the market to open short positions. The immediate goal for profit taking is 111.000-110.900. The movement is tending to 110.650-110.400. When tracking a position, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account