FX.co ★ USDJPY monthly resistance broken

USDJPY had a tremendous month this March. Price has risen from 106 to 110 and has broken major resistance trend lines coming from the 2015 highs.near 125. USDJPY for a third consecutive month is showing strength similar to the 2016 reversal from 99 to 118.

Red horizontal line - resistance at 112

Blue line -trend line resistance (broken)

On thing is for sure in USDJPY. Don't go against the trend. Price has now broken key resistance at 109 and is eyeing 112 horizontal resistance. With a higher low at 102.66 this upward move could unfold into a big bullish trend that could push price back to 125 and higher.

The bullish strength in USDJPY is impressive. In the weekly and Daily charts there is no sign of a bearish divergence and this implies that this up trend has lots of room to go. A pull back towards the blue trend line resistance as a back test is justified and I believe that this would be a great opportunity to re-enter long if it comes. Until then traders should not bet against the trend. USDJPY can explode higher as it has done in the past.