Technical outlook and chart setups:
1. The USD/JPY pair steered clear above the 103.00 mark yesterday taking stops out. As seen here, the pair forming a falling wedge on the daily chart view as seen here. Also the pair has reached a fibonacci resistance above 103.00 levels. A bearish reaction here, and push below 102.50 would accelerate downside to test/break 100.80 levels.
2. Support is seen at 102.00, followed by 101.30, 100.80 and lower, while resistance is seen at 104.00, followed by 104.70 and higher up respectively.
3. The structure indicates that USD/JPY could produce a bearish reaction at current levels. 104.00 remains key for a confirmed upside potential.
Trading recommendations:
Aggressive setup would be to go short, with a stop above 104.00, while conservative setup is to remain flat for now.
Good luck!
