USDJPY is being rejected by the upside resistance
USDJPY is testing for a couple of days 104 resistance for an extension higher. A confirmed break above this resistance is required for an upside reversal. A rejection here as we are having it now will lead to a downside extension and a test of 103.240. The overall medium-term is a downtrend but we need to see a confirmation break below 103.200 for an extension to the downside. As long as the USDJPY is below 105 there will be a great probability of downside extension.
Note – We are inclined to short trade entries with the stop loss above 104.600.
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