USD/JPY climbs to new highs
The recent rally in USD/JPY has been well backed by the strong US dollar and we have breached 113 and moved rapidly towards 114. Overall the price is in an uptrend and we had two attempts to move past the upper line above 114 on the 01.10 and Yesterday. Tuesday's daily candle ended with a Bearish engulfing one, signalling the end of the trend, which was too steep as well, quickly exhausting the Bulls. Move down to 113.161 is acceptable and we may see a test there on the line for possible breach and a new downtrend movement towards 112.146. Stochastic indicator is making a sell signal crossover as well and CCI starts to move below the overbought line. It is appropriate to short the pair at these levels, catching the correction down towards 113.161 with a stop loss at 114.110 and take profit at 113.161. That's a couple of pips you can squeeze out from the market at this point and you can wait out for further breach and confirmation that the move down will continue for new short entries.