The USDJPY moves north from the time the significant resistance was broken at 111.75. The price after the re-test of this resistance as a new support within a few days reached the next key level of defense near the round level of 113.00.
As can be seen in the daily chart below, on this resistance, a price action formation called Outside Bar was formed yesterday. It is worth noting that this is a counter-trend formation, however, due to the presence of key resistance, it may even lead to a correctional decline.
Where can the potential drops reach? The nearest local support areas are visible on the 4-hour chart, where the trend line was additionally broken. Currently, sellers can go to 112.40, then 112.12.
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The key for the USDJPY pair is still support at 111.75 – 111.62. After its possible defeat, the area around 110.90 will be unveiled. Alternatively, a permanent breaking of the resistance at 113.00 will open the way to 114.40.
