USD/JPY Resistance Turned Support (March 12, 2014)

The broken resistance zone is somewhere between the 50% and 38.2% Fibonacci retracement levels on the latest swing high and low on the 1-hour time frame. This might serve as a turnaround point from the pair’s recent retracement. Stochastic is pointing up but hasn’t reached the oversold region yet, which means the pair has room to dip a little lower before bouncing.

Going long at the 102.50 level with a  stop below the 61.8% Fib level and a target of new highs could yield a good return on risk for a short-term trade. To protect profits, the stop can be adjusted to entry once price tests the previous highs around 103.70.

By Kate Curtis from Trader's Way