FX.co ★ USDJPY could reach 107.50-108 the next few days

USDJPY is bouncing above 106.50 and is breaking short-term resistance levels. The bullish divergence warning signs in the RSI that we mentioned yesterday get confirmed today. This bounce could push price even towards 108-109 if we break above 106.70-106.80.

Red line -short-term resistance trend line

Green line - very important trend line resistance

USDJPY is moving above the red trend line resistance. Holding and stabilizing above 106.50 is key for the bullish scenario. USDJPY has the potential to bounce towards 108 or even 109 but bulls need to break above 106.80 next and stay above it. First bounce target is to see price touch the green downward sloping trend line resistance. If this trend line is broken we should expect USDJPY to touch the lower broken triangle boundary around 109. Holding above 105.65-105.80 is key for this short-term bounce.