USD/JPY bullish correction
The new Coronavirus issue which started at the end of 2019 caused the market to scrambled for safety. Growth forecast slashed and countries announce the possibility of a recession shortly. Proceeding to February, total death tolls and people infected by the virus continue to rise. Fortunately, the infection number across the world is minium as China managed to swiftly block external contact after the virus identified.
The global market sentiment will depend on the coronavirus update. If the virus could be handled then positivism will return to the market.
USD/JPY bounced from 105.50 support level and started moving higher. The upward movement capped near 110.00 resistance for several months. Currently, the bull attempting to breakout above the resistance level and there is no conclusion yet. At the end of the current month, traders will observe where USD/JPY closed at. A close above 110.00 will trigger further bullish pressure.
110.00 resistance holding out against bullish pressure. No major upside breakout happened yet and the pair might trade between 108.50 – 110.00. Traders will wait for a further reaction from the 110.00 to get a clue on USD/JPY next direction.
USD/JPY upward movement has reached 110.00 resistance and the trendline resistance. The pair has not printed a higher high compared to the previous swing high. Without a higher high above the swing high then USD/JPY might reverse its direction again.
USD/JPY is waiting for either bullish breakout or rejection from 110.00 resistance. The pair overall trend is bullish for short-medium-term. On the higher time frame, we have a range between 105.50 – 115.00. If the pair closed above 110.00 traders could enter long positions on 110.00 retests.