USD/JPY - Strong bullish momentum from this pair but can we maintain??

Published date: 29/06/2018

Following my previous analysis on this pair, we are still trading within the 150 pip range between the 109.30 support level and the 110.80 resistance area highlighted on my chart. On Wednesday I explained we had some bullish momentum in this market as price rejected the daily ascending trend line and we were once again retesting 110.00 as resistance. What we were then looking out for was either a break above the counter trend line and the 110.00 level to enable longs trades back towards the top of the consolidation zone at 110.80 and possibly beyond or a rejection of 110.00 and a break of the daily trend line to enable shorts. We can see on my chart we did in fact break the counter trend line , retested this as support along with the 110.00 level we just broke through and then managed to continue toward the target of 110.80. Now we are at this level in which price has not managed to break through three times in as many weeks. We are finding resistance at this level once again and, price is also currently rejecting the daily descending trend line.

I am now currently watching price action carefully at this level, should we manage to continue the current bullish momentum to break through the resistance and trend line we will see this pair visit 111.40 as our next target. Should we fail once again at this level, we look set to retest 110.00, once again......


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