USDJPY

USDJPY WEEKLY

The recent rally observed from the USDJPY may just very well be short lived. This is as the volume of the break out rally is low in comparison to the volume expected from a true breakout. It is also wise to keep in mind that the USDJPY as completed a 5 wave up move and has been finding resistance near the monthly trend line for the past couple of months.

The USDJPY may go as far as the 103.6 which represents the 61.8% Fibonacci retracement from the monthly high. This is also a level that has seen very high volume and is a key price level, a close above this level may result in the USDJPY retesting the monthly high.

 For the long term I am expecting the USDJPY to rally to around 103.6-9 then fall to around 96.51