USD/JPY—Shooting Star Indicates a Dollar Pullback in the Cards

USD/JPY (121.481)

• Resistance Levels: 122.47, 123.87, 125.85
• Support Levels: 120.80, 119.61, 117.18
• Trade Strategy: Stand Aside

Looking at the below daily MT 4 chart, we are noting the formation of a shooting star candlestick. This has not been confirmed yet, as we need a daily close lower. This could lead to a decline in the USD/JPY Forex market.

We need a daily close above the congestion area that runs from 121.85 to the channel top at 122.47. Should this happen we will challenge the technical resistance at 123.87. Should the Dollar push lower, then we note near term support at 120.80. This a former resistance level. A break below here will challenge the channel bottom at 119.61,

There is no trade opportunity right now and no clear directional price movement that would warrant a long or short Dollar trade. For now I am flat till better trade opportunity presents itself.