Trading recommendation:
USD/JPY is trading sideways at the price of 108.65 but near the very important resistance (sell zone) at the price of 108.82-108.95. My advice is to watch for potential selling opportunities as long as the JPY is trading below the 109.00.
Red rectangle – Resistance 108.85
Pink rectangle – Support 1 (108.26)
Pink rectangle – Support 2 (108.02)
Stochastic oscillator is showing the bearish divergence on the most recent upward swings, which is sign that buyers became exhausted and that we might see downward movement in the future. On the MACD oscillator, I found decreasing on the upside momentum and that slow line did start to turn down, which is another sign of the potential downside. Watch for selling opportunities with the targets at 108.26 and 108.02.
