As it was repeatedly noted in yesterday's materials, at the auction on June 14-18, the US dollar showed a fairly strong strengthening against its main competitors. The Japanese yen was no exception, which ended last week's trading with losses, although not as strong as other currencies, especially commodities.
Weekly
As you can see, the growth of the USD/JPY currency pair last week, compared to other major currency pairs, was relatively small. In addition, the last weekly candle formed a not-so-small upper shadow. All this points to quite complex nuances with the promotion of the quote in the north direction. This week's main point will be the ability (or lack thereof) to break through the strong resistance at 110.97 and end the week trading above the strong technical level of 111.00. If the bulls on the instrument manage to complete this task, the next growth targets will be 111.80, 112.20, and possibly higher prices. With a downward trend scenario and the end of weekly trading below the red line of the Ichimoku Tenkan indicator, you will have to forget about the continuation of the rise for a while. These are the technical realities of the weekly timeframe.
Daily
On the daily chart of the USD/JPY pair, there is uncertainty, which can be judged by the last two Doji candles with long shadows. It seems that the market does not know in which direction to move the quote. Yesterday's candle is especially characteristic because after falling to 109.72, the USD/JPY bulls found the strength to neutralize all losses and finish trading in positive territory. And here, once again, I would like to draw attention to the influence of the Tenkan and Kijun lines of the Ichimoku indicator, which yesterday provided good support to the price and did not let it go lower. On the daily chart, we have a range in which the pair is trading 110.97-109.72. I believe that the exit from this range may well clarify the situation regarding the further direction of the quote. At the same time, if the reversal of bearish patterns of Japanese candlesticks appears below 110.97, this will be a signal to open short positions. If bullish candles appear on this or smaller timeframes near 109.72, a signal will appear to open purchases. If the exit from the designated range guides us, then after the breakdown of 111.00 and fixing above this mark, on the rollback to it, we buy with the goals of 111.60 and 111.80. A breakdown of the lower limit of the range of 109.72 with consolidation below will make it possible to open sell deals with the goals of 109.30 and 109.00 after a rollback to the broken level. Today, at 19:00 London time, Fed Chairman Jerome Powell will address the relevant Senate Committee with a report on monetary policy. It is an important event that can have a strong impact on the price dynamics of the US dollar. If Powell maintains his recent hawkish mood, the dollar will continue to strengthen. Otherwise, the "American" will face serious problems, and it can significantly weaken with all its main competitors.
