USDJPY (11 October 2016)
Hello traders, in my home language: Dumelang 🙂
USDJPY made a significant move last week closing above descending channel resistance that extends from the 2016 high at 121.68. It has been a long wait for this breakout. last week’s rally topped out at 104.15 before retreating to 102 ahead of the weekend.
I am observing how the market responds to the 104 area last Thursday and Friday which to me indicates that 104.00 is indeed a critical level to keep an eye on.
A daily close above the 104.00 handle could perhaps attract enough bulls to push it up o to the July high at 107.50.
Keep in mind that bears could be patiently waiting at 106 zones on the way up.
I’m waiting for a pullback to the fib zones and CPP/MPP area. Should there be none, I will wait for a daily close above the 104 level. I’ll need to see the area retested as role reversal new support before committing long.