USDJPY price movements are described simultaneously by two channels. The market is bounded by an upper yellow bound on the top and a lower green bound on the bottom. Since during the previous trading week we saw the price decrease from the yellow to the green wall, then the price pushed up from the green bound, now we can see the beginning of the price rise to the resistance level of 109.78, which is on the upper yellow bound. And if this level is broken above, the bulls will open the way to the resistance of 111.38.
[button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#df4444″]SELL USDJPY[/button] [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#3cc195″]BUY USDJPY[/button]
If we consider a downward scenario, its implementation is possible if the support level of 108.35 is broken below. In this case, the bears will open the way to the level of 107.56, which is on the lower bound of the yellow channel.
