USD/JPY: Rejecting off 108.000 as expected. Can we fall to 106.00?
Hi traders and welcome back to EverythingFX.
The US Dollar is currently trading at 107.711 against the Japanese Yen during today's London session!
Taking a look at the higher timeframes, we can see there was an immense amount of pressure in and around the 108.000 level as we saw a massive spike through but closing back below. Dropping down to a daily timeframe we can see we have had that rejection with a shift in momentum to the downside. All we need to do is look for a good risk to reward setup to take advantage of this move.
Let's drop down to the 4-hour timeframe, we printed a low in and around 107.300 as explained in our previous article where you would have bagged 50 PIPs. We have since seen a slight pullback and are resting in and around previous support, broken, now potentially turned into resistance! I am expecting some sort fo reversal from these levels which would take us back down to our monthly support of 106.000 so essentially a good risk to reward upon a reversal from these levels.
Fundamentally, not much happening today, however, the Dollar is in the limelight on Thursday as we have GDP coming out with a consensus of 2.0% QoQ which will set the tone going forward. In terms of risk, we seem fairly neutral at the moment so stay tuned to our Market News section, Twitter feed and social media accounts for further updates.