USD/JPY did sell off after the bad data from Retail sales m/m. USD/JPY did test of the 110.81. Anyway, we expect upward movement and potential shakeout of the sellers.
According to the H4 time – frame, we found that short-term trend is bullish. The bad data from Retail Sales m/m, in our opinion only shacked the weak traders but we expect the trend to resume. The ADX is reading is above 30, which is sign that trend is strong and that you should watch for buying opportunities on the pullbacks. Additionally, there is confirmed inverted head and shoulders pattern, which is another strong sign of the potential bullish movement. Resistance levels are seen at the price of 111.70 and 111.90. Support levels are seen at 110.80 and 110.54.
Trading recommendation: We are long USD/JPY from 110.95 and with targets at 111.70 and 111.90. Protective stop is placed at 110.50.The material has been provided by InstaForex Company - www.instaforex.com