Hello everyone. JPY has been weak against USD since Jan. of last year by almost 30%. With almost 90 degree rise on the monthly chart, I started to notice that usdjpy is coming into solid supply zone(132-135.39).
In my opinion, buyers is likely to take a breath just before arriving at the key zone. The current key support level is 127. If that level broke, I'd like to seek bearish setup on the top around 130.50-131.50
What if the 127 holds well, price may rebound and hit the zone 132-135.39. we can look for long setup on the hour chart base on momentum.
So, in a nut shell, bearish setup is based on reversal with the belief that momentum is not sustainable. The long setup is based on momentum with key level holds well.