USDJPY pair showed a steady up-move last Friday, by making series of Higher Highs, and Higher Lows.
If you are bear, the current price level seems to be a good selling zone, from Fibonacci 61.8%.
However, the price already went a bit higher than 61.8%, and also I feel the market chaos situation seems to be stable, resulting the original “Weaken Yen” move may be coming back.
Fortunately, we have a nice test with a litmus paper.
If we see another Higher High, then we can assume the up-move continues up to Fib78.6% and beyond. On the other hand, if we see Lower Low, then it can be a reversal pattern, and we have to setup a Short trade plan.
So on M15 chart, look for the break of either 121.60 or 120.60, and try to follow the direction.
It will be a nice trade opportunity for either London or NY open today.
Hope this helps you build up your own trade plan.
YJ Baik – Forex.Today @ Tokyo