- USD/JPY is testing a monthly resistance line established in October 2018 and confluence of a 200-week and 50-month moving average.
- Daily spinning top and channel resistance point to bearish a corretion.
- Trend line support confluence could hold, guarding room to 109 the figure.
- Break of 110.50s, opens run to 111 the figure, and grind to 112.50s.
USD/JPY has surged in recent days to meet a monthly resistance line established in October 2018 that has the confluence of the 50-month moving average, a firm resistance zone between 109.80 and 110.29. A break of the resistance would be significant and set the stage for a sustained uptrend, initially targetting the 110.50s, 111 the figure, 112.50s.
USD/JPY month chart, trend line resistance guarding 112.50s
USD/JPY bulls reaching towards daily channel resistance
- Bulls target channel resistance.
- Trendline support could hold on pull-backs.
USD/JPY daily bearish engulfing/spinning top
- A mixed bag a the top of the channel.
- Bullsih engulfing followed by the bearish spinning top.
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