USD/JPY Back to 108.05 Area

The United States dollar versus the Japanese yen currency pair seems governed by the bulls’ will. Art the bears going to show up any time soon?

Long-term perspective
Following the validation of the double resistance area highlighted by the 106.94 high and defined by the 107.00 area alongside the falling trendline, the price resumed the decline, which ended up only after painting the 102.59 low.
From the 102.59 low, the price climbed to another area of double resistance — defined by the 103.74 intermediary level and the same falling trendline.
As the aforementioned area was not able to spawn another fall, an angled rectangle took shape and facilitated the piercing of the double resistance and the departure from it.
In fact, the appreciation tuned out to be a substantial rally, as it brought the price above the next resistance area — 105.09. Even with bearish opposition — see the 104.40 low — the bulls validated 105.09 as support and accelerated toward the north.
In their ascension, the bulls pierced the intermediary level of 106.12 and the firm area of 107.00.
As the volatility is high, one possibility is to see the price falling towards 107.00, validating it as support, and sharply rising again. If the potential fall does not reach 107.00, as long as the price oscillates above it, the bulls have chances to conquer 108.05.
Of course, the current appreciation may simply continue, which would allow the bulls to put the price above 108.05. From there, the next target is 109.08.

Short-term perspective
The fall from 106.22, which took the role of a false piercing of the 106.02 level, extended until the 104.92 low.
From there, the bulls quickly recovered, conquering 106.02 and setting in motion an appreciation that seems to be determined to check 108.02.
So, if a retracement comes into play, as long as 107.34 aids as support, 108.02 is a matter of time.
On the other hand, if the appreciation simply continues and the bulls do check 108.02, then 108.53 is their next target.
Only if 107.32 cedes, the appreciation may decelerate and attempt to retest 106.77.

Levels to keep an eye on:

D1: 107.00 108.05 109.08
H4: 107.34 108.02 108.53 106.77

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