Yesterday, the USDJPY traded down to retest the support level of 135.35, but failed to break lower. This move to test and reject the support level was similar to the price action on the 1st of March.
As the USDJPY consolidates along the 136 price level and 38.20% Fibonacci Retracement level, look for breakout potential on the USDJPY.
A recovery in strength on the DXY could see the USDJPY climb higher toward the 137 round number resistance level, with the 61.8% Fibonacci Retracement level possibly forming a strong intermediate resistance level.
Alternatively, if the DXY continues with the current downtrend and weakens further, look for the USDJPY to trade below the 135.80 price level to signal a possible retest of the 135.35 support level again.
As the USDJPY consolidates along the 136 price level and 38.20% Fibonacci Retracement level, look for breakout potential on the USDJPY.
A recovery in strength on the DXY could see the USDJPY climb higher toward the 137 round number resistance level, with the 61.8% Fibonacci Retracement level possibly forming a strong intermediate resistance level.
Alternatively, if the DXY continues with the current downtrend and weakens further, look for the USDJPY to trade below the 135.80 price level to signal a possible retest of the 135.35 support level again.
