USD/JPY - Shorts seem the only option at the moment

11.05.2018 / 11:29

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Forecast / USD/JPY / Our expectations:

The main trend remains downward and the current levels provide a good opportunity for short positions. What do we have to support Short-a? Price in resistance zone formed by basic diagonal, horizontal, 200SMA and 50% Fibonacci correction. Price Action - Relay Bar and Double Top Formation, still inactive but showing that bulls are weakening. DeMarker points down, coming out of an overpurchase zone - a heavily negative signal and the possibility of a new bearish wave.

Let's look at the Dollar Index - the index reaches resistance levels formed by the bottom in 2015 and 2016, and if it goes over and stays there, then long positions at USD / JPY will look more appropriate.

SL: 110,479

Alternative scenario: If the price goes above the resistance zone and stays there in several consecutive bars, the negative scenario will be spoiled, and we are more likely to see a raise in the pair.

Trader Petar Milanov

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USD/JPY - Shorts seem the only option at the moment

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