The USD/JPY has been bullish but appears to be stalling this week. However, as we examine the charts, we can see that the bullish momentum is still strong, and there is still room to run before hitting some key resistance levels.
The USD/JPY is holding below 116 after making a new high on the year this week at 116.10. It has also been holding above 115. If price does extend lower than 115, we should expect buyers above 114, last week’s key support pivot. We also have support at 113.16, and if the RSI approaches 40 and stalls, we should expect a bullish attempt. A break below 112 will be needed to neutralize the market.
To the upside, the next resistance above 116.10 might be in the 119.80-120 area. Above that we should expect sellers at the 2007-high of 124.16.
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