Technical outlook:
USDJPY has reversed lower from 110.30 levels just above the Fibonacci 0.618 retracement of the previous drop between 112.40 and 104.50 levels respectively. A drop below the counter trend line and 107.60 would certainly confirm that USDJPY has reversed for good. Please note that the overall bearish structure would remain intact until major resistance at 112.40 holds. The counter trend rally is likely to complete at 110.30 and the bearish trend is expected to resume, pushing prices below 104.50 levels. Aggressive traders may initiate shorts around current levels with risk above 110.30, while conservative traders should remain flat and allow USDJPY price to break below 107.60. Thus, sell on rallies towards 109.50/60 levels.
Trading plan:
Aggressive: Short @ 108.80/85 and 109.60, stop @ 110.70 target is open
Good luck!
