USD/JPY seems to take shape after failing to reach at least 105.00. USD has taken full control and drives the pair up to new highs. Today, the rate has rallied as the JP225 index reached new highs.
Most recent price developments suggest that USD/JPY could turn to the upside in an attempt to approach and reach 108.00 - 108.50 area. The pair has managed to come back above the downtrend line expressing an upside expansion.
USD/JPY pressures the median line (ML), a valid breakout and stabilization above the R1 (106.57) proves strong buyers and signals potential rise above 107 psychological level as soon as possible.
Up reversal is in progress as we speak, a new higher high, fly above 107.05 brings in a long opportunity with the target at the upper median line (UML) of the black ascending pitchfork.
- USD/JPY Trading Tips
Buy a consolidation above the median line (ML) and above the R1 (106.57) or wait for a run beyond 107.05 former high. R2 (107.38), R3 (108.12), and the upper median line (UML) are likely targets.
Sell only from below 105.13 former low, this scenario will invalidate a potential reversal and will announce a deeper drop.
