The NZD/JPY pair is trading within the cloud. A failed attempt to move higher will push the market to exit the Kumo, confirming a bearish scenario.
USD/JPY: target for selling
Information is not investment advice
The US dollar looks vulnerable versus the Japanese yen. As you can see, the resistance line is limiting USD/JPY on the upside and, unless the pair tries for a breakout (which anyway will meet resistance at 106.50 and 106.80), the easiest path for it will be to go down. The pair formed a lower high and is already testing levels below 106.00. On the H4, the support line is at 105.75. The decline below it will open the way down to 105.30 (August support area). This bearish scenario is in line with the negative expectations traders have ahead of the FOMC meeting on Wednesday.
Trade idea for USD/JPY
SELL 105.70; TP 105.30; SL 105.85
The NZD/JPY pair is now poised to exit the Kumo. If that happens, the currency pair will enter into a new bearish sentiment.
USD/JPY is moving sideways between the pivot point at 105.708 and the resistance level at 106.26
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