USD/JPY: Price on diagonal resistance, long is still in force

USD/JPY: Key resistance levels 113.00: a horizontal, diagonal and Fibonacci levels.

Doji which shows buyers uncertainty after the last upward movement but nothing else, because there is no other price action signal.

Consolidation around these levels is possible because bulls are still in control. The price is over 50 and 100 EMA.

CCI (50) is above 0, indicating that the movement is still upward

If we go through the 4-hours chart, we see that the price trend is not bearish, although it has a lower peak, still has a higher bottom.

The price is still traded above 20 EMA, which is over 50 EMA - a bullish tendency is in effect.

First support 120.07. Only price passing below these levels and closing below them will signal for a possible decrease.

While the price is above that level, the long is more likely.

As we expected in the previous analysis, the pair reached its target of 113, but the upward movement is still strong.

CCI(50) is above 0, stop on 111.70

Alternative scenario: Price passing below 112.07 will increase the likelihood of a decrease. Moving the price below these levels will make me change my attitudes towards the short.

Stefan Dimov Angelov - Head of Stocks Trading

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• Barclays short on USD/JPY with TP:108.10 and SL:113.40