The question is does USDJPY maintain the momentum ?
We can't ignore the fact that world's economy is in turmoil with many problems which still not have solution.
Hence, investors still choose Japanese Yen as a good destination for safe haven place.
USDJPY now stops at key point I show on the chart. That is convergent point of Kumo cloud, SMA200 and long term ).
It needs a strong catalyst to break this point, so I don't think USDJPY could break it.
From 116 to 121.60, it's 560 pips. I think U/J would retrace after a big move. However, it's a chance to buy in dip.
My vision is:
- IF USDJPY indeed breaks 121.60, the door to next resistance at 123.60 will be opened, we will position U/J to that level.
- On the other hand, I think we should BUY Limit at 120.30 or lower at 119.70