Dollar / Yen tried to lower over the past week, formed a bottom at 101.18, but then picked up and closed at 106.72 hitting 107.68 earlier this morning. The outlook is bullish for a test of 108.00. A clear break and daily close above 107.50 will open the door to 109.00 by changing the basic technical outlook from neutral to bullish medium-term and short-term signals. Immediate support is seen at 106.85 whose breakthrough could lead price to neutral trading zone testing 106.25 / 00.
The pair continued its upward direction on Monday, recording its strongest session since early July amid a positive day for the dollar overall. USD/JPY climbed by 156 pips to 108.40. The daily limit values were reached respectively at 108.53 and 106.73. Moving averages crossed upward, confirming the positive trend. Bulls remain in a leading position as an adjustment should renew their interest.
There is a breakout below the support trendline of the overall bullish trend that has been forming in the past two weeks as well as a RSI divergence on the 4H time frame. I already have a short position, because I think there will be a major correction to the downside and the first target will be around 109.50.
The US dollar rose against the Japanese Yen on Friday. By the end of the Asian session USD/JPY was trading at 113.72, gaining 0.32%. I believe that the support is now located at around 110.23, Tuesday's low, and resistance is likely at the level of 113.73 - the maximum of today's trading.
The dollar registered a slight rise against the yen on Thursday. The US currency continued the positive momentum from Wednesday, but a break of key levels was not reached. If the bulls continue to dominate, the resistance at 113.82 will be overcome soon. The session started at 112.48, as the uptrend prevailed throughout. The maximum of the day was reached at 113.52 and the final valua was 23 pips lower.
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