USDJPY: Sell Signal from Strong Resistance

The price reached a strong resistance level. We got a reversal candlestick pattern, which confirms the price reversal and a possible downward movement. RSI confirms the reversal as well, and MACD histogram gives a bearish signal. DMI is bullish, but ADX line falls. It tells us that buyers are not so strong.

Based on these signals, we have a sell opportunity. It is possible to open short trades using the low price of the signal bearish candle and a breakout below this low. As well it is possible to use a reversal signal from the resisatnce if the market tries to break this zone one more time. For both options, stop orders must be placed above the local swing high and the resistance level. Profit targets can be placed at 109.00 and 108.500 levels.

It is not financial advice. You must do your own research. Use this information to make your own trading plan for the market. Only you can be responsible for your trading, and it is your obligation to care about your money. Don't forget about it!