USD/JPY: Tough Challenge At First Resistance
Jason Sen | May 24, 2016 03:09AM ET
USD/JPY first resistance at 109.38/43 should be a tough challenge. However if we continue higher look for 109.65/68. Gains are expected to be very limited but a break above 110.85 targets a selling opportunity at 110.00/04. Shorts need stops above 110.15 for the next selling opportunity at 110.30/40, stops above 110.70.
Failure to beat first resistance at 109.38/43 keeps the pressure on for 109.08 and perhaps as far as support at 108.75/65. In severely short term oversold conditions this could hold the downside but longs are risky in the bear trend and the daily chart outlook is negative for this week. If you try use stops below 108.40. A break lower targets 108.22/20 then 107.82/80.
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