The USDJPY has been falling rapidly since the beginning of this year, and in the second half of March, it has set a low around 104.63. Since then, the declines slowed down and the demand side again entered the game.
The first signal of the return of the bulls was the closing over the 20-day SMA on March 28th. Then, after a short break and a calm growth, the buyers managed to break the key area within 107.70.
Breaking the resistance at 107.70 meant that it can now be a support. It is therefore worth observing the price action in case of return of quotations to this support. If a clear price action signal is created on or above it, you can consider joining the bullish momentum.
The nearest goal for potential long positions in this scenario would be the current maximum (110.03) and the area of resistance within 110.30. However, if the support zone at 107.70 is overcome, the bears will open the way to this year’s minimums at 104.63.