USD/JPY is trading in a range between 107.40 and 106.70 levels. We'll have a great trading opportunity when the price escapes from this extended sideways movement. The pair is under buying pressure, you can notice that USD/JPY is holding near the 107.40 - 107.39 resistance area, the upside obstacle, after the failure to come back down towards the downside line of this range.
The bias is bullish, and the buyers will hold the upper hand as long as USD/JPY is trading above the uptrend line. A breakout above the 107.40 level, another peak high, top/higher high, will validate a further increase in the upcoming days.
On the other hand, a failure to reach the 107.40 level again, or a rejection, followed by a breakdown, drop, below the uptrend line will signal another downside movement towards the 106.70 static support.
USD/JPY Trading RecommendationsBuy USD/JPY if the pair jumps above the 107.40 level, the first upside target is seen at the 107.72 levels. A selling opportunity could appear if USD/JPY drops below the uptrend line. This scenario will signal another sell-off/decline towards the 106.70 static support/downside obstacle.