The Japanese Yen decreases versus the major currencies as the Nikkei stock index has bounced back and is almost to reach fresh highs. USD/JPY could climb way higher as long as the JP225 continues the upside movement.
USD/JPY is trading at 109.89 level and it could jump above the 110.00 psychological level in the upcoming hours. The price has gained by 1.45% since Monday. The outlook is bullish on the Daily chart after the rejection from the 50% retracement level.
USD/JPY has decreased after the failure to stabilize above the median line (ML) of the ascending pitchfork. The Yen has gained ground a little on the Coronavirus fear, but as you can see, USD/JPY is somehow expected to make another higher high and to resume the upside movement.
The pair has failed to reach and retest the inside sliding parallel line (SL), now it has come back above the 61.8% retracement level and above the SL. It is very close to hit the median line (ML) again, which it represents a very strong dynamic resistance. A valid breakout above this line and above the 110.28 will confirm a 112.38 level (100%).
Trading TipsA valid breakout above the near-term resistance levels will give us a great chance to open a long position on USD/JPY, with the first target at the 112 level. The major upside target is seen at the upper median line (UML) of the ascending pitchfork.
You should be careful because another false breakout above the median line (ML), Pin Bar or a Bearish Engulfing, could signal another potential drop.