Yen is back under pressure and weakened to 3-week low versus USD on Monday, since investors sold safe-haven assets they bought as coup broke out in Turkey last Friday.
Turkey government have arrested not less than 6,000 soldiers and law enforcement force who were involved in the coup in order to regain control upon the country and economy.
This situation had eased worries about new chaos which could weigh Europe’s economy and politics and investors get back to risky assets and sell their traditional safe-haven assets such as yen.
USD/JPY is testing intraday key resistance at 106.303. If the resistance breaks, USD/JPY possibly will continue the uptrend to 106.871-107.507. On the other hand, hourly stochastic and CCI are overbought. Therefore, as alternative scenario watch for bullish signal confirmation on a pull-back move to within the Fibonacci support area at 105.383-104.815 with 105.735 as target and 106.303 in extension.
Be careful if the price managed to break support at 104.815 because it will turn the intraday bias bearish and possibly will push USD/JPY down to 104.463-103.895.
– Buy on break of 106.303; S/L: 105.753; T/P 106.871 or 107.507
– Buy on bullish signal confirmation to within 105.383-104.815; S/L: 104.65; T/P: 105.735 or 106.303