Chart of the day

USDJPY CHART OF THE DAY

USDJPY is reaching the top of the flag channel and a 61.8% Fibonacci retracement of the last swing lower 142 level. This is the most important level at this point and a break above is required for the upside continuation.

A rejection here and especially a break below 140.900 would lead to a downside correctional reversal lower to test 136 and extend in the third of the possible five waves lower.

Look for a possible short trade upon a break below 140.900 with a stop loss above 141.800 to target 136.