Daily Price Outlook
- USD/JPY pair found support at 137.35 and rebounded upwards.
- Test of key resistance at 139.17 resulted in price consolidation below this level.
- Expectation of a resumption of the correctional bearish trend.
- Targeting a revisit of the support at 137.35.
- Breaking below 137.35 would lead to a next target at 135.55.
- Negative overlap of the stochastic indicator supports the bearish outlook.
- Bearish bias expected unless there is a breach of 139.17 and sustained hold above it.
- Expected trading range: 137.60 (support) to 139.17 (resistance).
The USD/JPY pair experienced a strong support level at 137.35, leading to a noticeable upward rebound and a subsequent test of the key resistance level at 139.17.
However, it is worth mentioning that the price failed to break above this level and has started to show signs of consolidation.
This indicates a potential resumption of the correctional bearish trend in the upcoming sessions, with a target of revisiting the support at 137.35. Breaking below this level would further push the price towards the next correctional target at 135.55.
The current negative overlap of the stochastic indicator reinforces the likelihood of a resumption of negative trades today, supporting the overall bearish bias unless there is a breach of the resistance level at 139.17 and a sustained hold above it.
USD/JPY - Trade Idea
Entry Price – Sell Limit 138.969
Take Profit – 137.268
Stop Loss – 140.070
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$170/ -$110
Profit & Loss Per Micro Lot= +$17/ -$11
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