USD/JPY is currently trading with a slight bullish bias. The pair traded long as previously forecasted but failed to reach a key resistive trend-line. We expect a minor movement to this trend line before we can go short. As can be noticed, the pair continues to trade with the equilibrium zone 121.612 and 118.44 despite the breakout witnessed in the US Dollar Dollar and a positively correlated pair HKD/JPY. We expected a bounce from the immediate upper trend line to push the price to a break below 118.44, short positions are thus ideal for trading but with stops at 116.15. This notion can only be compromised should the price close above the now resistant trend line.
Sell along the immediate trend line, with stops at 118.44, and the next stop at 116.51. trades can also buy above 119.74, or above the now resistive trend line.