Good day traders! The USD/JPY is approaching an upper channel line which could act as resistance and turn price lower again.
There is also a confluence of two Fib retracement levels (using different highs) that intersect the upper blue channel line that could also act as resistance.
Should the USD/JPY trade higher again, then strong resistance might turn price lower again from within the 108.10 – 108.65 zone. Ideally, I would not like to see a move above the 0.786% Fib retracement level at 108.65, and should price break the 109.38 level, then it would invalidate this trade idea.
More updates to follow.
Bias: Short-term bearish
Potential resistance: 108.10 – 108.65
Potential Targets: 106.85 and 106.00
Until next time, have a great day and stay safe!