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USDJPY chart review

The USDJPY pair restored some  of its earlier positive move this early morning and has now approaching a very muddy waters, seen technically. The improved market sentiment is based on ongoing US-China trade speculations. There were also a lot of jawboning from Kuroda-san, BOJ Governor after Bank decided to maintain its status quo. At the follow-up conference, Kuroda-san reinstated his expectations that the central bank is not going to reconsider its accommodative policy anytime soon.

In the meantime, the risk mood seems to be shaky. Technically, there is still a room for further bullish move, however, it seems limited.

USDJPY 4 hour chart

The selling pressure is getting stronger and will only increase as price will fight to move higher. I expect price will reverse somewhere around 110.50 and further up there is a 111.05 level which is a strong resistance cluster.

I would recommend selling from these two levels scaling into position at each one. This is going to be a tactical short for a quick profit-taking.

Price will further likely to descend to 108.70 support where  another detailed view will be required. Breaking below this supports means further bearish move towards previous lows but that is another story for another day.

Have a nice day,

Fuad