Last week on USDJPY clearly belonged to bears. In the end of January pair was just below 115.00, currently price is more than 200 pips lower. Will the power of bears ever expire?
It is hard to find answer to that question. Both last FOMC statement and payrolls were not dovish (payrolls surprised positively) but these news were not enough to convince market about strength of the dollar.
USJPY is right now just above the lower band of bearish channel seen on daily chart. In the same place there is also psychological support level 112.00. Connection of these two supports make us believe that this is a place to expect bullish activity.
However gains were not last long without change of current sentiment on the markets. The first opportunity to build future perspective of USD will be tomorrow’s publication of JOLTs report and US trade balance.
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Bullish rebound can reach even area of 114.00. In this place we can find clearly not respected 23.6% of bearish movement starting in June last year and 21 MA. It is not excluded that USDJPY will be 80 pips higher and will test upper band of channel. Unless break of 115.00-50 area will not be confirmed, USDJPY will stay just in correction.
