Technical outlook and chart setups:
The USD/JPY pair has rallied into the resistance zone around 108.00/20, as depicted here on the Daily chart view. Please note that the 108.20 levels is also convergence of past support turned resistance and fibonacci 0.681 of the fall between 110.00 and 105.00. A bearish reversal remains high probability from current levels and hence it is recommended to initiate short positions now, risk remains above 109.50 at least. Resistance is fixed at 110.00 levels, while support is seen at 106.50, followed by 105.00 and lower respectively. On the flip side, a push through 110.00 would negate the bearish outlook for the pair.
Remain/Initiate short positions now (108.00/10), set stop above 109.50, target is 102.00.
The material has been provided by InstaForex Company – www.instaforex.com