Global Recession Fears Put USDJPY in a Very Interesting Position

Most likely, we see the currency pair’ movement from the lower bound of the yellow channel to its upper wall. But the first target on the bulls’ path is at the upper green bound, and the resistance level of 110.41. In the next coming trading days, we can see the market growth towards this level, as the price continues to be above the red line of the moving average, which indicates a good bullish potential.

However, if the market reaches the lower yellow bound and breaks down the support level of 107.81, the bears will open the way to the next support level, which is at 105.43.