USD/JPY:- 112.000 On The Cards, As Key Resistance Level Breaks
USD/JPY:- Over the past few weeks we have found it difficult to grasp a strong bias direction on this currency pair, as it has provided us with both bullish and bearish scenarios. Having first broken above the 110.000 monthly key level 8 weeks ago, the pair has moved sideways consolidating around this level, breaking above and below. The currency pair has, however, created a series of discrete Higher Lows indicating that there is bullish pressure and buyers are slowing starting to take control of the market. There remains a key zone of resistance at 111.000 that needs to be broken and sustained above. However, a daily break and closure beyond this point will almost certainly provide us with enough confluences to push higher and fulfil the next weekly key level of 112.000. This has acted in the past as a major barrier for both support and resistance, and may in a similar manner once reached.
For now, we concentrate on the higher timeframes to suggest that price is now ready to continue its discrete bullish run, as investors look to regain some confidence in the US Dollar leading into the 2nd Quarter of the financial year.