USDJPY reaching critical support level
The USDJPY pair is reaching a very important level, at 50% of Fibonacci @ the 110.00 area.
This level is important not just because of the Fibonacci level but also because there is a downtrend since the beginning of November last year, which exerts its function as a support around the 109.90 - 110.00.
Therefore it is important because it could generate 2 different movements;
*Point A - BUY position opportunity if the trend-line and the 50% Fibonacci holds it support @110.000, looking for 2 targets such as the 38.2% of Fibonacci at 112.000 being the main one and the second target around the 112.500 level. It is important to notice however that the CCI (period 20) is oversold, which may generate a momentum for the bulls.
**Point B - SELL position opportunity if the 110.000 support level breaks, leading to the 108.000 level and potentially reaching the 106.500 level, which is a support line from the trading range started in March 2017.
Keep an eye on this pair, there is opportunity for profitable trades.
This level is important not just because of the Fibonacci level but also because there is a downtrend since the beginning of November last year, which exerts its function as a support around the 109.90 - 110.00.
Therefore it is important because it could generate 2 different movements;
*Point A - BUY position opportunity if the trend-line and the 50% Fibonacci holds it support @110.000, looking for 2 targets such as the 38.2% of Fibonacci at 112.000 being the main one and the second target around the 112.500 level. It is important to notice however that the CCI (period 20) is oversold, which may generate a momentum for the bulls.
**Point B - SELL position opportunity if the 110.000 support level breaks, leading to the 108.000 level and potentially reaching the 106.500 level, which is a support line from the trading range started in March 2017.
Keep an eye on this pair, there is opportunity for profitable trades.