USD/JPY At Crossroads! Long Or Short?

USD/JPY stands at 109.89 level at the time of writing. It seems undecided on the H4 chart. The price moves sideways in the short term, so, we'll have to wait for a fresh trading opportunity.

Personally, I hope that USD/JPY will offer good trading signals after escaping from the current range. The price has increased from 109.70 today's low even if the Japanese Retail Sales has registered a 2.4% growth compared to 2.1% growth expected and after 0.1% growth reported in the previous reporting period.

USD/JPY could drop deeper and it could resume Friday's sell-off if the Japanese stock index, Nikkei, and the Dollar Index will drop. The Pending Home Sales indicator was not seen as a high-impact event, but it could still weaken the Dollar a little after reporting worse than expected data.

USD/JPY Undecided!

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USD/JPY is trapped between 110.22 and 109.48 levels. Escaping from this range could bring us fresh trading opportunities. It has dropped below the ascending pitchfork's lower median line (LML) again signaling strong pressure.

It has come back above the weekly pivot point (109.82). The immediate high is seen at 109.96, while the 109.70 is seen as the immediate low. Registering a valid through one of these levels could indicate the short-term direction.

Dropping below 109.70 today's low could signal a potential downside movement. An upwards movement could be activated by a bullish fly above the 110.22 level.

Forecast!

USD/JPY could offer a selling opportunity if the price drops and closes below the weekly S1 (109.38).

On the other hand, a buying opportunity could be signaled by a valid breakout through 110.22, above the weekly R1.

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

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