We have been calling this level on USDJPY for several days now, as 109.110 also corresponds to 100% extension. However topping tails on 1H chart and resistance ahead are slowing down USDJPY rally. This is the main reason why we believe any long positions should be lighten up, meaning liquidating half or more than half of the position in order to protect profits.
While there is need for more confirmation that would suggest going short, trying to predict the top, especially of a C wave, is reckless. For the moment we will remain on the sidelines and go short only if the channel is broken on the downside.
Stop Loss for this scenario would be at today’s high. While Take Profit would firstly be in 109.110, and later on 109.370.
I am currently holding a short position in EURUSD which I opened due to failure of price to close above 14 EMA. While I have been stating these days that there are many reversal signs for EURUSD, especially candlesticks signals, price is approaching key support around 1.1350-1.1330.
If EURUSD fails to go above 1.1367 I will consider lowering Take Profit to 1.13255, and if that level is broken, I will consider holding this short for a bit more time because a larger downside would be on the table. However Bottoming tails exactly in 38% retracement level suggest that it might take more time and effort for that level to be broken.
Still, 1.128 is on the table.