USDJPY - Cloud and symmetrical pattern hint at a correction

USDJPY posted a strong bullish day yesterday but bullish momentum stalled below 80.00. This has formed a bearish daily Butterfly formation, a pattern that should have a pullback level to at least 78.35, a 61.8 percent retracement of the whole formation. Furthermore, this also ‘lines up’ with the weekly Ichimoku cloud cover. However, we need to see a break of 79.55 to generate a sell signal. Looking for signals to sell with a break of 79.55 confirming the bias (25 pip stop).

The profit targets will be: 79.23, 79.00 and towards 78.35 (but not today!).

Resistance levels are: 80.00, 80.20 and 80.63.