Trades to the highest level since mid July. Can the buyers keep the bullish break going?
The USDJPY is extended to a new session high and in the process is extended to the highest since mid July. Looking at the daily chart, the pair extended above the topside channel trendline near 107.00 and the 61.8% retracement of the move down from the June 2020 high. That level comes in at 107.071. That area is now risk on the daily chart. Stay above is more bullish going forward.
The next topside target comes in at the mid July high price of 107.526. Get above that and traders will start to look toward the July highs starting at 107.78 and then the July 1 high at 108.158. Buyers are in control on the daily chart
Drilling down to the hourly chart, the pair is also extended above a topside trend line at 107.40 currently (and moving higher). Can the buyers build off of the recent break on the hourly chart and continue the run higher? Traders will behind that trend line for intraday clues. If the price starts to trade more comfortably back below the level, we could see a rotation back down toward the lower trend line.
Speaking of which, on Wednesday and again today, the price tried to dipped below a lower trendline, but could not get very far on the breaks. After the modest fails, the pair based against the 107.00 level before continuing the run to the upside today (bullish off the natural support level). The lower trend line currently comes in at 107.187 (and moving higher). Although there has been a number of fails below that trend line over the last few days, if sellers push again, look for more pressure to the downside.
