USD/JPY analysis for April 16, 2019

USD/JPY has been trading sideways at the price of 111.98. Major resistance at the price of 112.14 is holding and buying USD/JPY at this stage looks risky.

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According to the Daily time-frame, we found that buyers didn't have power to break key resistance at the price of 112.15, which is sign that downward correction might me possible. Yesterday, the day closed neutral (doji candle), which is confirmation of indecision near the important resistance. We do expect potential test of the Friday's low at the price of 111.60 before any further upside.

Trading recommendation: We are short USD from 111.98 with tight protective stop at 112.15. Target is set at the price of 111.60. The position will be only active till end of the day.

The material has been provided by InstaForex Company - www.instaforex.com