The US Dollar was a touch lower in Friday’s US session and the Yen touched a high of 134.05 in New York around the closing bell in a move that could be the foundation for a continuation on Monday. The USD/JPY pair has been trading in a range between 132.50 and 134.00 for the past few weeks, with bulls and bears trying to gain control of the pair. A 50% mean reversion could be in play for the opening range over the coming sessions and the next couple of days to test prior resistance near 132.50. However, while on the front side of the trend, the bias remains broadly with the bulls.
The following illustrates a bearish bias based on the W-formation on the daily chart. The W-formation is a reversion pattern and in this particular case, we have seen solid resistance at a round number and ongoing pressures into 134.00. The bears will need to break 133.70 structure which is all that is left to do now that they are on the backside of the hourly bullish trend.
The USD/JPY pair has been in an uptrend since the beginning of the year and the bulls remain in control. If the bulls either commit from here or lower down, a continuation would initially target 135.50/137.20. The bulls will be looking for a break above 134.00 to confirm the continuation of the uptrend. The bears, on the other hand, will be looking for a break below 132.50 to confirm the continuation of the downtrend.
The USD/JPY pair has been in a rangebound market for the past few weeks and the bulls and bears have been fighting for control of the pair. The bulls remain in control of the pair and will be looking for a break above 134.00 to confirm the continuation of the uptrend. The bears, on the other hand, will be looking for a break below 132.50 to confirm the continuation of the downtrend.
It is important to note that the USD/JPY pair is a highly volatile pair and can move quickly in either direction. Traders should be aware of the risks associated with trading this pair and should use proper risk management techniques when trading it.
Overall, the USD/JPY pair is in a rangebound market and the bulls remain in control. A break above 134.00 would confirm the continuation of the uptrend and a break below 132.50 would confirm the continuation of the downtrend. Traders should be aware of the risks associated with trading this pair and should use proper risk management techniques when trading it. The bulls and bears will continue to battle for control of the pair and it remains to be seen who will come out on top.