USD/JPY has been trying for some time now to break above the 100 level but with no luck. The first time it reached near 100, it pulled back below 96. The second time was yesterday as prices from 99.80 pulled back down towards 98.40.
As seen by the chart posted above, prices have found it difficult to break the 100 level resistance. Both times we witnessed a rejection and a pull back. This is very helpful as this behaviour gives importance to that price level. Therefore a break out of that resistance will have more credibility than usual. As long as prices trade below 100, it is very dangerous to be bullish as a third rejection could push prices below 98.40.
Trend remains up as prices keep on trading within the longer term upward channel. If the double top is broken upwards, prices are expected to go near the upper channel boundaries at 102 level. Support is found at the 99 level that if broken we could see a decline that will probably push prices towards 98.40. If that low is also broken, then I would expect a push towards the lower channel boundaries near 97.
For more help trading this pair and other FX pairs, don’t hesitate to contact us. As always, thank you for taking the time to read my new post.