USD/JPY is trading at 106.77 level and it seems ready to resume the upside movement. It has managed to jump through the downtrend line and above the median line (ML) confirming an upward reversal.
The dollar has taken the lead in the short term versus its rivals as the USDX has rebounded. Still, the Dollar Index has been moving in range in the short term, another higher high, jump above 93.99 level will signal further growth and the USD's broader appreciation.
USD/JPY is trading above the R1 (106.48) level, the next upside target is seen at the R2 (107.06) level. The 50% Fibonacci line is seen as an important upside target as well. The next major upside target is seen at the upper median line (UML) of the black ascending pitchfork.
A consolidation, stabilization, minor retreat above the R1, and above the median line (ML) could bring another long opportunity.
- USD/JPY Trading Tips
The valid breakout above the R1 (106.48) level represented a good buying signal, the 50% Fibonacci line and the upper median line (UML) could be used as upside targets. If you want, you could wait for a temporary retreat before going long. A median line (ML) retest could bring a perfect long entry.
Right now we don't have a selling opportunity, maybe only a potential drop below the broken downtrend line will suggest selling.
