Technical analysis for USD/JPY for October 31, 2018

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Technical outlook:

The 4H chart presented here is clearly indicating that after breaking the line of resistance USD/JPY also took off resistance at 112.89 levels yesterday. The currency pair is stalling at fibonacci 0.50 of the entire drop between 114.50 and 111.40 levels respectively. There may be a drop seen towards 112.00/20 levels, backside of resistance turned into the support trendline, before pushing higher towards 113.30 levels. Please note that 113.30/40 level is the fibonacci 0.618 resistance as discussed yesterday and remains highly probable turning point. Going forward, prices are expected to remain below 114.50 levels, targeting below 111.40 levels respectively.

Trading plan:

Flat for now, look to sell around 113.00/30 levels, stop above 114.50, target is open.

Good luck!

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