Recently, the USD/JPY pair has been trading downwards. As I expected, the price tested the level of 106.12. According to the H4 time – frame, I found that price rejected from upper band (+2.1 standard deviations), which is sign that buyers got exhausted. I also found rejection from the supply trendline and hidden bearish divergence on B% oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of 105.80 and at the price of 104.60.
Resistance levels:
R1: 106.49
R2: 106.72
R3: 106.91
Support levels:
S1: 106.08
S2: 105.89
S3: 105.67
Trading recommendations for today: watch for potential selling opportunities.
