The US dollar versus the Japanese yen currency pair made a new high at 109.48 after piercing an important level. What is of major importance is whether or not the bulls can sustain the gains.
Long-term perspective
After printing the low of 104.44, the price started a swing that challenged the resistance trendline of the descending trend.
After gathering enough steam — around the 106.79 level — for a new upwards movement, the bulls pushed higher. As the resistance trendline was already weak, it gave way and the bulls managed to pierce 108.13 level.
Later on, the price confirmed the 108.13 as support via the low printed at 107.88, which was followed by the piercing of 108.85 and the materialization of a new higher high at 109.48, which adds further credit to the bulls.
The candle that printed the 109.48 high also seems to have confirmed 108.85 as support. However, the price might be too high for conservative traders to join.
As a result, buyers can rely on two possibilities. The first one is to use a more aggressive approach. This means that they are satisfied with the higher high and with the fact that the price closed above 108.85.
On the other hand, as the trend is now an ascending one and the swing from 107.88 to 109.48 can be considered an impulsive wave, the conservative traders might wait for a retracement to open new positions.
Either way, the bulls are eyeing the 110.29 resistance level.
Short-term perspective
The price went under the 108.43 support but quickly recovered and pierced the 109.19 resistance.
As the bulls try to confirm 109.19 as support, they could either succeed or fail. If they succeed, then the next target is represented by the 110.00 psychological level — not highlighted on the chart. On the other hand, if they fail and the price comes back under 109.19, then 108.43 can — yet again — see a revisit. But as long as it is not pierced, any depreciation represents a new bullish opportunity.
Only the piercing of 108.43 opens the door to 107.06.
Levels to keep an eye on:
D1: 108.85 108.13 110.29
H4: 109.19 108.43 107.06
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