USDJPY breaks 1H 100-SMA support, good to short rallies
Bank of Japan held rates as widely expected and Governor Kuroda in the statement that followed said that the policy switch to yield curve control is working well. the japanese cabinet office also upgraded its view of the economy, noting that the economy is in moderate recovery. it was the primary upgrade since March 2015 and has kept the yen buoyed against the dollar. USD/JPY slips below 5-DMA at 117.72 and has broken 1H 100-SMA support at 117.75. we see scope for take a look at of 117 levels, bearish invalidation above 118. Support levels – 117.55 (session low), 117, 116.98 (Dec 20 low) Resistance levels – 117.72 (5-DMA), 117.75 (1H 100-SMA), 118, 118.42 (Dec 16 high) good to short rallies around 117.70/75, Stop Loss: 118.20, Take Profit: 117.55/ 117
In Other View Point – USDJPY Short
This could be a great short for UJ. This bullish impulse has to retrace at one point or another, and I think this could be a great spot for this current uptrend to take a breather. We have a bullish bat completing at 120.522, and a .786 fib level at 119.987 (measured from the last significant high in the channel to the left at 125.846 (red arrow) to where the most recent significant low was (green arrow)). I will be watching price action if the bat completes. I will be looking for at least 3 confluences to confirm my entry.