USD/JPY stays higher at 109.18 level even if the pair failed to reach an immediate upside obstacle. The rate decreased a little in the short term as the USDX plunged after registering a new higher high.
The outlook is bullish, so a new higher high, a valid breakout above the near-term resistance levels could indicate further growth and could bring a new buying opportunity. The USD should definitely take full control if USDX and JP225 will continue to increase.
The week ahead may bring high volatility and sharp movement into the currency market. The US is to release its retail sales, Capacity Utilization Rate, Industrial Production, Business Inventories tomorrow. Moreover, the FOMC meeting could shake the markets on Wednesday.
USD/JPY Attention At Resistance!USD/JPY decreased a little after failing to hit the ascending pitchfork's upper median line (UML). It has registered only a temporary decline as 108.50 stopped the bearish movement. Now the pair is struggling to reach the upper median line (UML) and the R1 (109.41).
A valid breakout above these levels could validate more gains ahead. Technically, its failure to reach 108.16 static support indicates strong buyers. Also, Nikkei's growth forces the Yen to depreciate.
We cannot exclude a temporary range between 109.50 and 108.50 levels. Maybe the rate will move sideways attracting more buyers and bullish energy before resuming the swing higher.
Trading Tips!A bullish closure above 109.50 could suggest buying USD/JPY with a potential target at 111.00 psychological level. I believe that a new lower low, drop below 108.16 could signal a bearish reversal and could invalidate a larger upside movement.