Today we direct our attention to the USD/JPY currency pair. Yesterday the USD/JPY showed significant progress and was quite active during the day, but it eventually failed to overcome the 113.60 level and retracted. Still, we believe the pair would likely continue to test its resistances and make space for further upward movement, as long as the pair keeps trading above the level of 113.
To predict future highs, we can reliably use the guidance of the nearby resistance levels for the USD/JPY - we have resistances at 113.19, 113.41, and 113.63. We believe that overcoming these resistance levels is the most likely course for the pair as it stands now.
Still, it’s good to be prepared for the alternative scenario as well. On the downside, we have several nearby support levels such as 112.75, 112.50, and 112. If the first support is breached, likely we’d see the pair play around the other two supports as well.
At this point the movements of the USD/JPY largely depend on trader sentiment and market behavior. The level of 114 stands before us as a psychological barrier, and if the pair is pushed beyond it, we can see it grow further up to 115 even.
As of the moment of this article’s publication the USD/JPY is trading around the first level of resistance at 113.19. Most technical indicators agree that the best course of action is a strong buy stance.
