Although today is already the middle of the trading week, it would not be entirely correct to ignore another major currency pair, which is the dollar/yen. As noted earlier, at the auction last week, the Japanese yen was the only one of all the major currencies that showed a strengthening against the US dollar. In this regard, today's review of this trading instrument will be mainly devoted to technical details, and we will start with the weekly chart.
Weekly
After the pair reached a very strong resistance zone of sellers in the area of 111.00 the week before last, and a fairly long upper shadow formed at the candle, it became clear that if not a change in the trend, then a reversal for a correction is expected. Well, last week's trading fully confirmed such expectations. However, some very interesting technical nuances will be noted now. First, a false breakdown of the resistance level of 111.10 is visible. No matter how hard the USD/JPY bulls tried, they failed to return the exchange rate above this mark and rewrite the last highs at 111.68. Secondly, the last weekly candle has a long lower shadow, and the closing price was above the red line of the Tenkan Ichimoku indicator. It is from this line that there is an increase in the trading of the current five-day period, and the pair is trading near another important and strong technical level of 110.50. Judging by the weekly chart, the following can be said about the prospects of the USD/JPY price movement. The bulls on the instrument have raised the bar so much for themselves that a true breakdown of the sellers' resistance at 111.68 and the closing of the weekly session above this mark is necessary to continue the upward trend. To continue and strengthen the bearish sentiment for the pair, you need to rewrite the previous lows at 109.56, and then transfer the trading for the pair to a significant mark of 109.00.
Daily
On the daily chart of the USD/JPY pair, we see a slightly different picture. After a strong decline, which took place on July 8, the pair was actively recovering and showed growth for three days in a row. However, as usual, considering the technical nuances, I have to draw your attention again to the blue Kijun line and the red Tenkan line of the Ichimoku indicator. With a high degree of probability, I can assume that it is these lines that provide strong resistance to attempts to further growth and restrain the rise. However, given that yesterday's trading on USD/JPY ended both above the Kijun and above the Tenkan, it is likely that the pair will continue to grow and once again test the levels of 111.10 and 111.68. Now, at the end of this article, the dollar/yen is trading with a slight decrease. However, there is still plenty of time for the situation to change and the bulls took control of the course of trading over this instrument. I would like to emphasize once again that the tasks of the players to increase the exchange rate include not only overcoming the Tenkan and Kijun lines, but also a confident consolidation above 111.00, followed by a breakdown of the resistance levels of 111.10 and 111.68. I consider purchases to be the main trading idea for USD/JPY that can be tried after the breakdown of 110.72, on a rollback to this level, or after a decline to 110.40. To open sales, we wait for confirming candle signals near the designated resistance levels, and if they appear, we sell.
