More close since the month of July 31the USDJPY is the end of the week closing:
- Above the high of October at 113.43 and
- Negotiated at the highest level since the 12 July
Looking at the daily chart above, the pair at the bottom of this week close to the 200 week MA (green line). It was a bullish development and the price chopped higher for the remainder of the week.
Stay on the daily chart. the pair has reached a high of 113.56 Friday. That was the big trend line 113.66. A movement above (and stay above) the level in the new week would be more bullish for the pair, with the next upside targets:
- 61.8% retracement at 114.289
- The May to 114.367 and the
- July 11 at 114.492
This area (between 114.289 and 114.49) will be a big test for the bulls. I expect that the sellers would lean against this area on the first test, but expect stops on a break above this area.
If the trend line can not be taken, the proximity of support will come in 113.19-25. A move below this level will put the pair back in the trading range that has kept the pair set out on the last month (see red box in chart below).
If the price goes back in the box, I expect the price to wander down 100 hour MA (blue line in the chart below, 112.656 and moving higher). MY line was defined to support the Tuesday, Wednesday and Thursday, before moving higher on Friday. Disappointment from failing on the escape, would be likely to lead to buyers back to sellers, and an overview of MY line.