Remain flat temporarily. | 01 June 2018

Technical observation

Yesterday USD/JPY retraced the broken support zone 109.04-108.80, it could not penetrate above it and was rejected. Currently price is within the zone and i expect either a breakout above 109.04 or a close within the zone to trade the pair. I would advise you remain flat temporarily and wait for either a breakout above 109.40 or a close within 109.04-108.80 to enter a trade. If price closes within the zone, short USD/JPY with your take profit at 106.74 and stop loss around 109.76,in case there’s a clear breakout above 109.04 with a big green candle, long the pair with your ideal target at the resistance line 111.06.

Technical levels

Resistance levels

R1.109.62

R2.109.85

R3.110.32

Pivot

109.43

Support levels

S1.109.14

S2.108.89

S3.108.41

Trade signal

Remain flat temporarily.

101% Double the volume