USDJPY: Bullish But Around Potential Reversal Resistance…
As long as 109.57 -broken resistance turned support- holds on a daily closing basis. The USDJPY remains on the upside to 110.10 levels. A halt is likely. It may top here but a break above here would open 110.75 next, further upside, resistance comes at 111.50 levels ahead of 112.05 levels.
Above 109.57 the pair is bullish. Below 109.57 light bullish. Below 109.00 sees pullback threats. Above 110.10 the pair is very bullish.
On the downside, a failure to break and hold above 110.10 levels could mean a return to 109.57/109.00 levels. A halt could be seen, it may attempt to break above 110.10 levels. However; Below 109.00 sees corrective pullback threats to 108.50/107.85 levels.
In conclusion: The USDJPY sees upside threats above 109.00/109.57 levels.
Support: 109.57, 109.00, 108.50, 107.85, 107.45
Resistance: 110.10, 110.75, 111.50, 112.05, 112.70
Why there is a potential reversal around 110.00 levels ?!
- Fibonacci extension 127.7% at 110.10 suggests possible reversal. (Daily chart).
- Bollinger band -the upper band- around 110.00 levels. (Daily and weekly chart).
- Satanic resistance at 109.70 levels. A failure to hold above that level suggests possible reversal. ( Weekly chart).
- On the 4-hour chart. A Bearish reversal pattern is under development (not completed yet).
- A daily closing above 110.00 levels paves the way to 111.15 levels ( weekly resistance).
Key data/events which may affect USDJPY today:
- FOMC Member Harker Speaks at 16:00 GMT.
- FOMC Member Kaplan Speaks at 17:00 GMT.