Bulls Unleashing Their Fury Above 105.09

The United States dollar versus the Japanese yen currency pair skyrocketed. Where are the bears?

Long-term perspective
The descending trend was eyed by the bulls, who were seeking to put an end to it.
Their two previous attempts, marked by the 106.94 and 105.67 highs, respectively, were futile.
The third one, printed at 104.39, started to look as if it will follow the same path. However, when compared with the previous two, one thing catches the eye: the fact that in the former occasions, the price, following the false piercing, dropped like a stone.
This time it barely got under the 103.74 intermediary level, and when it did, it was quickly sent back above it.
After this, the bulls revealed their full might, starting a rally that, as of writing, noted the 105.64 high.
From here, one possible scenario is a consolidation phase above the 105.09 level. Of course, a validation could also come in the form of a throwback.
Regardless of the way it happens, 105.09 getting confirmed as support would allow the bulls to target the 106.12 intermediary level.
Only if the price falls back beneath 105.09, then the 103.74 level would get exposed.

Short-term perspective
From the 102.59 low, the price climbed until a little under the 104.44 area. Underneath, it started a consolidation phase.
Even if, along the way, the bears attempted to put the price under the 103.71 support level, the bulls swiftly put them to respect.
After the last bearish attempt, at 103.55, was taken care of, the bulls began a rise, placing the price under 104.44.
After what looked like yet another bearish validation, the bulls busted the level and sent the price beyond the intermediary level of 105.27.
If 105.27 turns — and as long as it remains — support, 106.02 is the next bullish objective.
On the flip side, if 105.27 facilitates a false piercing, 104.44 may be paid a visit.

Levels to keep an eye on:

D1: 105.09 106.12 103.74
H4: 105.27 106.02 104.44

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com