USD/JPY slipped lower but the outlook remains bullish, so you should be careful as the price could jump higher anytime soon. The Yen has increased a little as the Nikkei stock index plunged.
A USDX's rally after the recent decline could push USD/JPY higher as well. Technically, the pair is still expected to resume its growth after the current consolidation. The price tries to attract more buyers before jumping higher.
USD/JPY Consolidates Ahead Of A Breakout!
USD/JPY failed to reach the ascending pitchfork's upper median line (UML) indicating an overbought situation. 108.16 - 108.00 area is seen as a strong support area. Failing to reach it or registering a false breakdown through it could signal a new upside momentum.
Also, a new higher high, closing above 109.23, could be seen as a bullish signal. The current range is natural after the last swing higher. The bullish bias remains intact, USD/JPY could increase further, as long as it stays above 108 and beyond the ascending pitchfork's median line (ML).
Forecast!
Closing above 109.36 represents a bullish signal. A valid breakout above the upper median line (UML) and R3 (109.61) indicates a larger growth towards 111.00.
Also, a false breakdown with great separation through 108.16 or a major bullish engulfing printed on this level could bring a buying opportunity.
