USD / JPY
Time frame: H4
Technical Analysis: The price is in a tight consolidation of 40 pips between 109.60 and 110.00, with Fibonacci 50% now indicating strong price support. Since we had a strong upward movement it is more likely that the price will break the resistance formed at 110.00 and continue its appreciation.
Indicators: The price is over 50 EMA, and for the time being it is a strong support.
DeM – in values below 0.500, which supports purchases
Entry: After a breakthrough of the resistance (the red trendline), we can position ourselves with “buy” position and stop loss at 109.50
Alternative Scenario: If the price forms a price action formation that would suggest that the price has no breakthrough power enter a “sell” position.
Trader Milko Zashev