Today I am once again drawn to the USD/JPY’s price action. Not that it has moved a lot – far from it – but because there is the potential for a sharp, technically-driven, move. As mentioned, rates haven’t moved much higher after breaking through 108.45 key resistance last Tuesday. The USD/JPY managed to make a high so far of 108.95, before returning back to this breakout level. Its next move will be important so far as the technical considerations are concerned:
Source: Trading View and FOREX.com.
So, the USD/JPY is currently trading around a pivotal technical juncture. This means that whichever direction it eventual goes, there may well be some momentum behind it which could potentially lead to a sharp move in that direction. While the underlying trend is still arguably bullish for this pair, the bigger move may come if the breakout fails. Remember, false breaks often lead to fast moves in the opposite direction.
Original from: www.forex.com