At the H1 chart USDJPY can be observed slowdown in the downward trend evidenced by the recent highs and lows. An additional tool to help determine the deceleration of the trend are the moving averages EMA on H1 (75- and 100-periodic), which are flattened and begin to go up. Low of 10.19.2016 r. was the lowest level on the chart and according to our last analysis, USDJPY tested the support level at 103.50 in the level were also notable confluence in the form of the broken trend line, 61.8% FIBO abolition (measured from low of 10/19/2016).
You may notice a strong activity on the demand side. This is shown by high volume (connected with the closure of a candle H1), which was built during the test above-mentioned area. Currently you can see that gain is characterized by the increasing turnover. Local resistance is located in the vicinity of 104.00. Strong resistance is at 104.50 area.
