USD/JPY Short

28 Des 2020

As we can clearly see, price had been consolidating between the 104.740 resistance area and the 103.670 support area , rejecting both of them at least three times before it finally broke the support(103.670). We all know that once price breaks below the support then the same area turns into resistance. So after the drop, price created a nice bullish trend line and was also testing the 103.670 resistance at the same time. Furthermore, by using the Fib Retracement we can see that price has rejected the 0.5 area and has also broken the trend line which means that we have a high propability shorting opportunity. Be carefull though because there is a slim chance that price will actually reverse and continue its bullish momentum before the end of 2020.