The Price Action method indicates a possible correction of the USD/JPY currency pair after a significant decline from the beginning of this year. Near the key demand zone of 105.500-106.200, a classic pattern of Inside Bar (D1 timeframe) has been formed, which acts as reversal formation. At the moment, the "bullish" sentiment is prevailing. The currency of the "safe haven" is under pressure due to a political scandal in Japan. The price is testing the local resistance of 107.250. We recommend you to pay attention to this situation.
If the price fixes above the resistance level of 107.250, it is necessary to consider purchases of USD/JPY. The closest goal of fixing profits is the mark of 107.850. In the medium term, the trading instrument can reach the round level of 109.000. When following the positions, we recommend using a trailing stop. Confirmations and entry points into the market should be looked for on the lower timeframes.
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.