End of the week USD/JPY was dominated by prevailing on the chart bears. Pair fairly deeply penetrated round level of 113.00, but few hours before Friday’s close of the markets on USD/JPY began timid growths. Today, they continue, however, the bulls hit an obstacle in form of local resistance…


The zone in the region of 113.00/25 was tested several times in the past – both from above and from below. Each time test of this zone was followed by a reaction of the price. Perhaps we will see such a scenario already this afternoon.

USDJPY H4

Last week brought unexpected drops in valuation of the dollar on the market and it translated into a deeper correction of recent increases in USD/JPY. The pair defeated indicated support on Friday afternoon and after the weekend is testing defeated levels.

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Base scenario for USD/JPY is continuation of Friday’s sentiments – the situation from last week has not changed and a day off on US stock exchanges is not inclined to change the medium-term direction. Price is still in the selected area, which means that finding the right price action signal at lower intervals may be a good solution to open a short position. Of course, if the bulls manage to pull the USD/JPY above the zone, the idea will be invalid.

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