Thursday, July 12, 2018

The Path To 118+ Before USD/JPY Is Open

USD/JPY finally broke out above the resistance trend line of the channel from 118.660   (11th June 2016) to 104.629 (18th March 2018) and at the moment is trading around 112.50-112.40.

In my opinion this breakout would open the way for a rally to 115+ and in the long term – 118+.

The closest resistance for the pair, however, is in the zone around 113.50 – 114.50. I think that the rally of the USD could reach that zone, but to overcome it the pair should form a correction that would test the trend line it broke out above.

In the alternative scenario the pair would begin a correction to test the breakout right now.