The US dollar versus the Japanese yen currency pair is still continuing the appreciation that began at the 105.00 psychological level. The question is: considering the determined way in which it advances, will the price simply pierce the strong resistance area at 108.00?
After falsely piercing the psychological level of 105.00 (and also the technical and important weekly support of 105.52) and printing a low at 104.44, the bulls took control and drove the price above the 106.92 resistance — a level that limited any upwards movements for quite some time.
Given this optimism, the buyers could very well try to bring the price above the triple resistance etched by the upper line of the descending channel, the lower line of the angled rectangle, and the 108.12 resistance level. If this happens, a reconfirmation of this 108.12 as support will allow further advancement, 110.27 being the first target.
Even if the price confirms, in a first instance, the aforementioned triple resistance, then the retracement that could be considered by some as the confirmation of the triple resistance would just be a new chance for the bulls to enter at better prices. In other words, even if the triple resistance appears to be confirmed, as long as the price oscillates above 106.92, the profile still remains bullish.
The price is contained in the ascending channel, now extending to the upper line. As a result, some small retracements or consolidation may be seen.
Any retracements to 107.08 could even turn into false piercings. Thus, instead of the confirmation of both the lower line of the ascending channel and the 107.08 level, one could observe the piercing of the channel with the continuation of the role of 107.08 as support. So, long as 107.08 is respected, further advancement is in the cards.
The next target is 108.49, followed by 109.12 (not visible on the chart).
Levels to keep an eye on:
D1: 106.92 108.12 110.27
H4: 107.08 108.49 109.12
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