USDJPY – consolidation at 110.00
On the USDJPY there has recently been a complete stagnation. The price of the currency pair has been moving within a narrow range of about 50 pips for a week. On the one hand, bulls do not have the strength to break through this barrier. On the other hand, bears are not ready to attack the south. As long as there is no concrete hit in either direction, the consolidation will last.
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Throughout the second half of December, the exchange rate of the dollar was systematically losing in relation to the yen. The culmination of this depreciation was a flash crash, which took place on January 2/3 in the evening. Since then, demand has taken over the market. Buyers, however, do not have the strength to break through the round level of 110.00.
If there is finally a breakthrough above the resistance, the next one is more than 200 pips higher, around 112.25. If supply begins to prevail, the drops may reach 108.50. In both cases it is necessary to wait for a clear signal to open a position.