USDJPY: has closed below the 116.00 key support, confirming a reversal pattern.
- Current trend: The bias is bearish in nearest term testing 114.00 before targeting 112.50 area. Immediate resistance is seen around 116.00. Any upside pullback should be seen as a good opportunity to sell, the measured target for the head and shoulders pattern comes in at 106-107.
- Support and resistance:
S1#114.00 , S2#112.50, S3#109.70
R1#116.00 , R2#116.50 , R3#119.50
- Trading tips: Wait for a retest of the 116 as new resistance. Any rejection from this area could offer a favorable opportunity to get short.
- Strategy: Sell on pullback @116, SL @116.50, TP @112.50/107.00