USD/JPY – take note of the falling trend line
Dollar-Yen is on a rampage, courtesy of a sharp rise in the treasury yields.
The immediate resistance is obviously the July high of 107.50; however, we must also take note of the fact that a break higher would not necessarily mean a long-term trend reversal.
Moreover, the descending trend line drawn from Dec 18 high and Jan 29 high comes around 108.00 levels today. Over the next few days the same trend line is seen sloping lower towards 107.50. Only a day end close above the trend line would signal the falling trend line from 2015 high has been reversed.
The immediate resistance is obviously the July high of 107.50; however, we must also take note of the fact that a break higher would not necessarily mean a long-term trend reversal.
Moreover, the descending trend line drawn from Dec 18 high and Jan 29 high comes around 108.00 levels today. Over the next few days the same trend line is seen sloping lower towards 107.50. Only a day end close above the trend line would signal the falling trend line from 2015 high has been reversed.
