FX.co ★ USD/JPY Upside Continuation or Downside Reversal?

USD/JPY Trapped Within A Range

The USD/JPY pair was traded at 134.84 at the time of writing. In the short term, the price is trapped between the 135.06 and 133.26 levels. As you can see, the rate dropped below the uptrend line, signaling exhausted buyers.

Now, it has increased along with the broken uptrend line testing and retesting. It remains to be seen whether the USD/JPY pair resumes its uptrend or develops a larger downside movement.

USD/JPY Forecast

135.06 former high stands as an upside obstacle. Jumping and stabilizing above it and above the uptrend line may signal an upside continuation. This scenario could bring new long opportunities.

Staying below 135.06 and under the uptrend line could signal a new drop. Still, only dropping and stabilizing below the 133.26 level may really activate a larger drop.