USD/JPY is trading in the red right now at 108.82 level, but the bias remains bullish. It could only test and retest the immediate support levels before resuming its growth.
Actually, we have to wait and see what will really happen because USD/JPY is trapped within a narrow range on the H4 chart. We had high volatility yesterday, the price action has signaled that the bulls are still very strong in the short term.
Right now, USD/JPY drops as the DXY plunges, even if the US Unemployment Claims have beaten expectations.
Technical Analysis!
USD/JPY was rejected yesterday from the confluence area formed at the intersection between the median line (ml) with the uptrend line. Now, the price drops after failing to stabilize above the weekly pivot point (109.15).
The uptrend line remains a strong support level. A new false breakdown with great separation or a major bullish engulfing could push the pair higher again. Still, you should know that only a valid breakout above the descending pitchfork’s upper median line (uml) and a new higher high could bring a new buying opportunity.
So, potential growth and a bullish closure above 109.33 could activate a strong growth ahead.
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