At the end of last week the USDJPY again reached support near 108.80. This level coincides with 50% abolition of range from the lows that emerged as a result of the referendum on Brexit to the December 2016 maxima.The current week brings upswing that is still being seen during today’s session.
Such situation on the chart traps this pair in consolidation. Its lower limit is 108.80, while the upper limit is close to 114.35.Indirectly, the area near 112.07, which is now a resistance, is also significant. If the price reaches it in the coming sessions, I expect a supply response there, however, it will not be a sell opportunity. Only a strong signal near 114.35 will prompt us to consider a short position.
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