Technical outlook:
USDJPY has formed a meaningful top at 110.30 level. The pair is expected to hold below this mark. The overall structure remains bearish with the primary boundary defined between 112.40 and 104.50 respectively. Please note that the counter trend rally seems to be completed at 110.30 also close to the 61.8% Fibonacci retracement levels. The single currency pair is seen to be trading around 109.10 levels at this point in writing. it may carve a lower high around 109.50/60 levels. The recent down swing can be defined between 110.30 and 108.58 and USDJPY may pullback towards 109.66 levels before declining again. The immediate price support is seen at 107.50/60 and a break below that would confirm that bears are in control. Downside targets remain below 104.50 levels.
Trading plan:
Look to sell around 109.50/60, stop above 110.70, target below 104.50
Good luck!
