Price Action Context
After multiple days of strong selling, on July 31st, USD/JPY hit a long-term support zone that in the past has produced 3 strong bullish reactions in 2018/2019. Short-term, price action reacted strongly to this area this time again, resulting in a strong bullish impulsive move breaking through a short-term resistance. This impulsive move has been followed by a weaker corrective pullback towards the broken resistance which now should act as resistance.
Trending Analysis
Short-term bias is bullish and the weak pullback into support can offer potential trading opportunities for traders looking to go long the pair with the next resistance starting to come in at around 106.64.
Closest Support & Resistance Zones
Resistance: 106.64 – 106.75
Support: 105.10 – 105.30ç
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