USD/JPY reached a new high of 106.98 level and is almost to reach the 107.00 psychological level which is seen as an important upside target. You know from my analysis that the pair should continue to increase and reach new highs as long as it trades above the red uptrend line.
So, the pair will definitely reach 107.00 level today which represents a resistance area, level. The resistance represents a level or an area where the offer could be higher than the demand. You can see that the rate has dropped from 107.00 in the past, that's why is important to see how it will react around this level.
The upside bias remains intact as long as the price is traded within the uptrend. I've told you that the breakout above 106.08, passing above a former higher high, peak high, brings a good buying opportunity with a potential target at 107.
USD/JPY is strongly bullish, it could continue to increase, as long as it is located far above the uptrend line. Passing and stabilizing above 107.00 signals that the buyers are stronger than the sellers and USD/JPY should approach and reach new highs.
Still, USD/JPY could register a temporary drop, decline, if the price fails to jump and stabilizes above 107. A temporary drop could help the buyers to buy it lower.
Passing above 107.00 and reaching 107.10 - 107.15 area could signal that USD/JPY will resume its uptrend targeting the next upside target represented by 108.00 psychological level.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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