USD/JPY: Bounce Likely
| Dec 07, 2021 09:42AM ET
Looking at the USD/JPY weekly chart, we can see it being stuck in a channel between 112.6 support and 113.6 resistance for the past week without any notable movements besides the rise in price today.
Recently, the pair attempted to climb higher and challenge the 113.8 longer-term resistance. After the spike on Dec. 1, it traded choppily for most of the week.
After that it fell near the 112.6 support but bouncing strongly on Dec. 4, starting its winning streak and clearing the 113.6 resistance.
It is currently traded around the 113.6 price range, with the closest support found at 113.4 and overhead resistance at 113.8.
Today we could expect a move near the 113.8 resistance level, as positive momentum may be at play.
However, if it doesn’t manage to hold on to the current level, then a case for a move towards and below the 113.4 first support base can be expected.
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