USD/JPY reached a fresh new high of 106.39 earlier and it seems ready to trade north in the upcoming period after passing above the former high. Today's rally could be extended if USDX will continue to increase after yesterday's throwback.
JP225 plunged in the short term and reached a support level. So, a rebound and resuming its growth could force JPY to decline versus its rivals. In conclusion, USD/JPY could increase if the USDX and JP225 will jump higher.
USD/JPY has retested the R1 (106.11) confirming it as support and now is almost to reach the ascending pitchfork's median line (ML). Reaching this line signals that the pair could register a valid breakout above confirming a further upside movement.
Today's false breakdown with great separation below 106.00 psychological level indicates strong buyers in the short term. Technically, USD/JPY's failure to drop towards the ascending pitchfork's lower median line (LML) signals a potential breakout through the ML.
Jumping and stabilizing above the median line (ML) could open the door for a larger upside movement.
Buy USD/JPY if it closes above 106.52 today's high. 107.50 could be used as a first upside target.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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