Bullish dollar rally following the election of Donald Trump on the 45th President of the United States lasts and is pushing the price of USD/JPY to for a long time not seen levels. USD/JPY is getting closer and closer to an important level on the chart.
Predictions of collapse of the dollar after the election of the Republican candidate for the presidency of the United States were not fulfilled . Moreover, USD is gaining strongly on the wave of early discount announced by Trump fiscal reforms. Investors increasingly want to have in their portfolios dollars and in the wake of increases in US currency speculators move on shopping.
USD/JPY hasn’t been so high since May of this year – the pair is getting closer to the next level equal to 109.00. Slightly higher is the level that can provide resistance to further increases in USD/JPY. Designating Fibonacci grid on the downward movement from the period June 2015 – June 2016 we are able to indicate the level of the first major abolition – 38.2.
It comes just in the vicinity of 109.20. This level was already in the past respected by the price several times, although it must be admitted that it did not constitute an iron resistance/support. By supporting with the Fibonacci scopes and measuring the last growth boost and accompanying correction on the chart we can determine the zone of resistance in the region of 109.47/23.
For the last three or four sessions, USD/JPY defeated quite a considerable distance (300 pips) not correcting increases sufficiently. The designated zone can thus be the first stop before traveling further USD/JPY north.
