USDJPY stuck in channel
Updated
The Yen has been moving in a somewhat flat band defined between (just above 78.6%) 109.50 and (just below 23.6%) 110.40.
The pair has been avoiding closing below 109.10
If there are no major movers in this week, and there aren't except a significant drop in Japan Balance of Trade (IF that makes any impact at all), the USDJPY pair may continue to travel this band - although not for long. It would help to keep an eye on Bollinger breakouts.
A hawkish USD outlook would cause the USDJPY to break 110.40 and make a move towards 111.60.
The pair has been avoiding closing below 109.10
If there are no major movers in this week, and there aren't except a significant drop in Japan Balance of Trade (IF that makes any impact at all), the USDJPY pair may continue to travel this band - although not for long. It would help to keep an eye on Bollinger breakouts.
A hawkish USD outlook would cause the USDJPY to break 110.40 and make a move towards 111.60.
Note
The Yen chose to climb higher before reaching a retracement on the upper end of the channel.It did so by reversing from the mid-channel level which could have been a good entry point as well. It was also the 38% fibo level at 110.15.
We now see the Yen climbing higher against the dollar and breaking the channel. Next level on the lookout 109.113
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