USDJPY Previous Support Turns Into a Bullish Resistance

USDJPY Key Levels
Resistance: 111.000, 109.500
Support: 108.550, 107.550

USDJPY forms a zigzag pattern on the daily chart. USDJPY experienced a serious plunge through April this year. The Plunge reversed to a bullish momentum on the 23rd of April. Price has been bullish afterward.

Price has rallied into a key zone at 109.550. The zone is 0.618 on the Fibonacci, at which it had an obvious reaction in time past. Price broke through 109.550 on the 27th of March and retested the key level with a long wick on the next trading day, the 29th of March. The level became a support to push the price to 111.000. The price plunged and crossed the 109.550 zone with multiple long wicks before crossing lower.
USDJPY Anticipation
Price once again is seen lurking around the 109.550 key zone once again. The zone has hindered price from reaching further into a higher price. Price reacted sharply upon striking the zone on Monday which created a wick. All through the week price has hung right under the 109.550 zone seeking to pass through.

If price fails to gather sufficient energy to break through the 109.550 zone, the price might plunge straight to the 108.550 support zone. A breakout can also be anticipated to drive price above the zone to aim for 111.000. The Parabolic SAR (Stop and Reverse) is still supporting a bullish run on the daily chart with multiple points below the latest candles on the daily chart.

The histogram bars have also been increasing in size on the upper side of the MACD (Moving Average Convergence Divergence) after the moving average crossed at the closing of April.
Since the rejection seen is upon striking the 109.550 zone, the Parabolic SAR has shown reversal signs to support a bearish run on the 4-hour chart. The MACD on the 4-hour chart also shows the price drop reaction upon striking the 109.550.

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