USD/JPY has formed consecutive lower highs indicating a bear market on the H4. On the daily you can see price bouncing off the daily support of 110.07 few weeks ago and retraced to the 61.8% fibonacci level before continuing the bearish momentum. Price has struggled to break the H4 resistance level of around 111.41, forming spinning tops and dojis with long wicks implying uncertainty around this key area and a possibility of a reversal to the downside. Price action has started to consolidate on the hourly suggesting the bullish momentum could be over and a bearish breakout is awaiting after a series of rejection taking place.
In terms of the fundamentals, the ongoing tensions between the US and China should boost the Yen at a greater rate than the Dollar strengthening, due to the Japanese Yen being a more attractive safe haven currency, hence supporting my short bias of USD/JPY in the coming days.
70 pips target with 35 pips stop loss, 1:2 risk/reward.
In terms of the fundamentals, the ongoing tensions between the US and China should boost the Yen at a greater rate than the Dollar strengthening, due to the Japanese Yen being a more attractive safe haven currency, hence supporting my short bias of USD/JPY in the coming days.
70 pips target with 35 pips stop loss, 1:2 risk/reward.
Trade closed manually:
Closed on entry due to pulling down stop when trade was 30 pips in profit