The USD/JPY has been fairly flat over the past couple of days. It currently sits between the 23.6% and the 38.2% fibonacci retracements where it looks to be range trading for now.A slight RSI divergence has also appeared which indicates a further move ahead is possible. The price is currently sitting just above the 23.6% line. Therefore the next movement looks to be a long one which will target the 38.2% fib line. This is a very strong resistance line as it has not been broken since the initial move back at the start of February and it is very close to the 200 EMA. The price will require a great deal of momentum to break this mark.
However, if the price does break the 23.6% Fib line then we will look to enter short with the scope of it returning back to the low at the 111.00 mark. Before entering into any position we will wait for either bearish or bullish confirmation. for the time being this paring looks to be fairly flat.
