USD/JPY Short Setup

5 Mar 2017

The last candle closed with a major rejection of the trendline that has proven to be an area of resistance. This could be a good opportunity for a sell, however price is also at a smaller support trendline (in blue). With this in mind, it may be better to wait for price to be rejected by this line and then short at a higher price. The bias for this wedge is to breakout to the downside, so an entry here would be perfect for that breakout. I would take some profits at either of the support zones (in blue) and hold onto the rest for the breakout that could see price reaching 108.7 or even lower.