USD/JPY has jumped above the former high signaling strong buyers and potential further growth. Is traded at 105.97 level at the time of writing and it could pass above 106.00 psychological level soon.
106.08 level reached in October 2020 represents an important upside obstacle. The price was rejected from this level and USD/JPY has decreased, that's why we consider this level to be a resistance.
Increasing further and passing above 106.08 could signal that USD/JPY could continue higher towards 107.00 psychological level. Technically, we cannot exclude a minor decline, retreat, before resuming its uptrend.
Trading Conclusion!
USD/JPY should resume its upside movement, growth, as long as it stays above the red uptrend line. Jumping above 106.08 and reaching 106.10 - 106.15 area represents a buying signal.
Also, retesting the 105.60 level after the current rally could help us to catch a new upside momentum.
