The USDJPY had a bearish momentum yesterday bottomed at 116.54. The bias is bearish in nearest term testing 116.00 area which is a good place to buy with a tight stop loss. Immediate resistance is seen around 117.65. A clear break above that area could lead price to neutral zone in nearest term testing 118.00 or higher. Overall I remain bullish.
The USD/JPY pair fell during the day on Monday, as this pair continues to be a bit overextended. I don’t know whether or not we can break down with any real significance, but we need to see some type of pullback in order to pick up momentum in order to go higher and reach towards the 120 handle. I believe that the 115 level below is supportive, and with this being the case I think that there is a lot of support all the way not only from that level, but all the way down to the 111 level underneath. A supportive candle is reason enough to go long, and therefore I have no interest in shorting. Overall, the Japanese yen continues to look soft, but we need to find value at lower levels.
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