General overview: USD/JPY extends pullback from intraday top, fails to extend further. As, expectation for ‘the drop in USD to test 107.90 first before stabilizing’ did not materialize as it traded between 107.95 and 108.54 before closing little changed at 108.05. The pair is now towards negative volatility in market and now headed towards the sell side in the market. The pair keeps it movement towards the selling side in the market. the pair is continue to move further towards the downside pair and create the strong sell side in the market. Sellers are creating major supply pressure in the economy as the supply zone has shown its modest power right now.
Technical analysis: From the technical point of view we can say that, market makes the downside movement in the chart. The pair is creates the bearish path in the market, and also getting support from the downside forces. The pair is forming negative volatility in the market. On the 4 hourly charts market shows breaks its resistance level previously and fall its strong aggression. The major lines show its death crossover in the chart as it gives strong confirmation for the fall. The RSI is also falling below 50 levels also MACD is also falling below the zero line creating the selling signals. The positional traders can take move towards the sell side in the market. the support level will be 107.50 followed by 107.00 as resistance will be 108.50 followed by 109.00
Trade idea: Our traders will sit on the sell side at level 108.00 target will be 107.30 – 106.60 and stop los will be 108.60.
