The USDJPY exchange rate in the second week of July has risen above the key trend line running from 2015 highs. It was then that the horizontal resistance of 111.10 was overcome. In the following week, the price set a new maximum, but on Friday almost all of the profits were given up. USDJPY quotations also lost last week, bringing the price to the EMA 10/20 averages channel and back to 111.10, which is now a support.

The situation on the daily chart is also interesting. As you can see, that the candles that were created last week had long shadows indicating the predominance of the demand side. In addition, the trend line from the current low this year was tested. Therefore, if confluence of support, where the above levels converge will defend itself, quotations may continue the upward trend.

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However, more can probably be said about this after we have seen the decisions of the central banks on interest rates and monetary policy. Already this week, both the American Fed and the Japanese BoJ will present them.

 

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