USD/JPY - D1
Our expectations - The price has reached a key area of resistance and registering a strong Price Action, mainly driven by the FED's decision to raise interest rates and change their plans to two more increases by the end of the year. Levels are good for building a long-term short position. The zone is characterized as key zone for several reasons. There is a main horizontal resistance formed from a previous bottom and two previous highs. At the last peak formed, the price tested, apart from the horizontal, as well as 50.0% Fibonacci, a downward trend retracement that began after the Double Top formation in early January 2017. The short positions are also supported by the main upper diagonal of the downward movement. Price Action - Bear Pin Bar, formed after the decision of the Fed. The bar has been tested yesterday and today, as a real breakthrough is missing - negative for the price. The current levels are exactly 50% retracement of the pins and give us the perfect opportunity to open a short with a maximum slim SL. DeMarker goes out of the over-sales area, pointing down - negative for the price.
SL: 111,653
Alternative Scenario - If the price moves above the resistance zone, it stays there, the negative scenario will deteriorate, and we are more likely to see a USD/JPY growth.
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