USD/JPY Is About To Reach 111.50 Again

USD/JPY is on its way to reach the key level at 111.50 for a second time. Once it was reached on 7th February 2017 (111.592) and now there’s only 60 pips left until the pair reaches it again.

111.50 is a strong support level – 38.2% Fibo of the impulse move to the upside from 25th September 2016 to 11th December 2016.

Apart from that, the middle line of the Bollinger Bands indicator on the weekly time frame is at that level too and it often is a strong support or resistance difficult to break out below or above.

And last but not least, that level was one of the targets of the RSI divergence of the above-mentioned impulse move to the upside>>>

In my opinion, in the beginning of next week we can expect a correction in the current zone and then a move to the downside toward 111.30 – 109.90, which is the next target of the RSI divergence.