Saturday, March 17, 2018

USD/JPY Is Developing Within A Wide Consolidation Between 105.00 and 107.00

The USD/JPY pair has been consolidating within the zone between 105.00 and 107.00 for three weeks, since 26th February. That zone has stopped the pair several times for the past five years.

On the weekly time frame the more precise level of support is at 105.50 and the pair has rebounded from it four times for the past five weeks. I think that in case the pair does not manage to break out below that support in the medium term we will see a correction and its first target to the upside will be around 106.90 – 107.20, followed by 108.00 - 108.20 and 109.00 – 109.50.

In the alternate scenario the pair will break out below the support and continue depreciating toward 103.00 – 101.00.