Today we will take a look at the USD / JPY currency pair. The pair is still remains under the strong technical resistance area of 107.90-108.05. This region was formed in mid-April of this year. It is also important to consider the long-term consolidation of the pair in the sideways range of 107.40-107.90. Therefore, a breakthrough of the range 107.90–108.05 can initiate a strong price movement.
The main scenario.
A Breakout and subsequent movement of the pair above 107.90-108.05 will indicate buying interest and further movement towards the area of 109.05-109.25. An intermediate target may be the 108.55 mark.
This scenario takes into account the appearance of a false breakthrough of the marked resistance area, as was on May 19th. In this case, the return of the currency pair under 107.90 can be considered as a bearish signal with the target at 107.40.
The bullish scenario will be realized only if a strong bullish fundamental factor appears for the USD and / or a significant weakening of the JPY. This means further growth in this currency pair is unlikely without a significant weakening of the USD.
The above review is not a direct guide to action, but carries an exclusively recommendatory nature.
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