Good day to all and wishes for a great month ahead. Today I focus on USDJPY as I believe it is close to reversing downwards as the upside is limited according to my view. Price is trading below important resistance levels at 112-112.50. Both cloud and horizontal resistance is found at the area mentioned. Price is expected to get rejected and at least make a pull back towards 110 if not lower.
Price has reached horizontal resistance and the 50% Fibonacci retracement of the decline from the March highs. We have bearish divergence in the 4 hour chart and we also got very close to the daily cloud resistance. We might get closer to 113 but I believe the next big trade here will be to the downside.
For more fx analysis follow me on twitter (@alexanderyf). Have a nice day and thank you for taking the time to catch up on my thinking.