USDJPY New Low, Potential Long.
The month of January has proven that the bears had control over the market. That being said it seems that a glimmer of hope has arrived for the bulls. There has been a lower volume of sellers in the market giving price action a chance to retest a daily resistance level @ 109.705. That being said in the case of a further continuation of a bear market a few key levels to look for would be 108.525 level and second the 107.82 level matching the previous structure lows. However given the current situation of a momentum shift in favor of a bull market, we can deduce that a break of the daily resistance can draw us closer to a key monthly level @110. Which is just 85 pips shy of our previous structure low @110.85 that price action has surpassed just last month. Also there is upcoming news on the Dollar with non farm & unemployment numbers coming in can provide an influx of buyers in the weeks to come. A safe position could be watching the markets until a new higher low is formed along with a higher close. This can provide confirmation of a reversal in our trend that has a high probability of happening.
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