USDJPY going back above 104.00 again gives hope to bulls about breaking local highs and moving even higher. Is it possible?


Key area for further gains is next to 104.90. This is where bulls reached last time, it was earlier this week. As you can see on the daily chart this is the area stopping bulls from further appreciation.

usdjpydaily-5

When we go down to H1 chart we can see that market is still quite bullish. Today in the morning there was correct test of support area around 103.35 after which pair started to gain.

usdjpyh1-3

After four quite big bullish candles it is time for correction. It also started in special place, next to 104.70 highs from last night. If pair will come back again in the green area or will break it, that will be first signal of bearish domination on the markets and it can lead to bigger depreciation in longer term.

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Another test of 104.90 should be considered as a sign of strong market and long positons will be more probable.

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