USD/JPY Is At A Crossroads

The US Non-Farm Payrolls data turned out to be considerably better than expected, but despite that the market seems inclined toward USD depreciation.

Still, I am fond of technical analysis and my personal view is that news serve mainly as catalysts for market movement, while one can read the inclination of the market on the chart. Which is why I will focus on the USD/JPY chart.

In my opinion, here the technical analysis picture can be filled out with two more trend lines (the thick red ones). The pair broke out above this trend channel with height of about 330 pips yesterday toward the end of the American session, but the pair reached a resistance at 115.50 and could not continue moving to the upside.

I think that there are two medium-term scenarios:

The first scenario is that there will be a correction and a renewal of the move to the upside toward 117.00 – 117.50.
In the alternate scenario there will be a move to the downside with first target at 113.50.