The market is now testing an important 1:1 (Orange) and 23.6 Fibonacci support level at 124.070
USD/JPY got as high as 125.850 but failed to stay above the 125.00 psychological level with the market now trading at 123.970 with the bulls running out of steam after 14 out of 16 days of gains.
The market is now testing an important 1:1 (Orange) and 23.6 Fibonacci support level at 124.070. If this level can attract some solid buying interest from the bulls, a test of the 125.870 high is likely in the days ahead, however, any break below this level will see a test of the 1:1 (Light blue) at 123.500 during the London or NY trading sessions.
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Moving down to the 15 minute chart, intraday players could be seen selling into a number of 1:1 (Purple) rallies over the last 2 days of trade, keeping an eye on the next major resistance level in this degree, the 1:1 (Light Blue) and 38.2 Fibonacci level at 124.570.
The best trade moving forward, in my opinion, will be to sell into the 1:1 (Light Blue) at 124.570 as the bears are likely to push the market lower after failing to hold above the 125.000 level.
* A 1:1 refers to a current correction being equal in length to a prior correction