FX forecast / USD/JPY / Our expectations
Middle-term downward trend. The price made lower bottoms and lower tops. Short-term upward trend finished with a breakout of the main diagonal resistance of the descending movement, which indicates that the bears are losing power. The price goes above strong zone of resistance where diagonal and horizontal resistances and SMA 200 are crossed. Technical indicator: CCI(50) - Goes above base level 100 and does not reversing - positive signal. The price is above SMA 200/50 - positive signal. With risk management purpose we can wait for a test of the break and enter in long position around 106.50.
Alternative scenario: If the price breaks below the zone of support and again re-entry in descending channel, the positive scenario will be dismissed.
SL: 106.00
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