USD/JPY - The short is more probable

USD/JPY Our Expectations:The price reached a diagonal support. Possible short with a stop 113.09. Price Action signal of an engulfing bar on resistance level, as well as 50% fibo. Price broke below 200 SMA again.

The fundamental supports the JPY for the moment, as Kim Jong Un treated USA. North Korean leader Kim Jong Un, in an extraordinary and direct rebuke, called President Donald Trump "deranged" and said he will "pay dearly" for his threats, a possible indication of more powerful weapons tests on the horizon. Kim said Trump is "unfit to hold the prerogative of supreme command of a country." He also described the U.S. president as "a rogue and a gangster fond of playing with fire." Some analysts saw a clear announcement that North Korea would ramp up its already brisk pace of weapons testing, which has included missiles meant to target U.S. forces throughout Asia and the U.S. mainland.
North Korean Minister of Foreign Affairs Ri Yong Ho said that his country may consider a test of a hydrogen bomb in the Pacific.

These news bring troubles to the investors, and it is possible for them to seek refuge in the safe haven instruments as JPY, Gold, Silver, CHF and ETFs

For a more precise entry, we wait for the price to breach the inner horizontal support on 4H and go short after a test.

Alternative scenario: If the price reverts and goes above the diagonal support, the long could continue to the zone around 114.00 - 114.82.

Jr Trader Alexander Kumanov

Read more:

• NZD/JPY – Short with the main movement after a price action signal
• Jeffrey Gundlach: “USD’s next move is going to be down”
• Here’s a cable forecast for $1.40 till end of 2020
• NZD to 0.59 at end of Q1 2020
• Support for risky currencies as trade war hopes grow