Yen is now preparing for the breakdown of the level of 109.700.
Good afternoon, dear traders. I present to you the trading idea for the USD/JPY pair.
So, on Friday, we have weak data on the US dollar. The latter slightly eased its pressure at 109.700. However, it never broke through this gigantic level. Today, the Asians have already fully compensated for this weakening, and actually absorbing this news.
The level 109.700 is under tremendous pressure from buyers. At the same time, mid-term stops in December and January are all behind this level. In this situation, we recommend developing on a breakdown of this level either in the market or with deferred purchases (buy stop) at 109.680.
There was no de-escalation in the Middle East over the weekend. Therefore, we believe that the bullish trend in USD/JPY may continue with a high probability of a breakdown of the level of 109.7.
Good luck in trading and control the risks!
