The chances of reaching the 108.50 level for the USD/JPY pair have significantly decreased

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Given a number of important factors, there is every reason to believe that further growth of the USD/JPY pair to the level of 108.50 so far seems unlikely. According to the results of Friday's trading, it was possible to conclude that the dollar could advance further last Friday, while any upward movement is considered as a transition to a higher trading range of 107.80/108.30. Subsequently, the dollar did trade between 107.90 and 108.26, but the dollar weakened at the opening of trade. The price movement on the chart suggests that the level of 108.26 is probably a temporary peak, and the dollar will trade below this level for a couple of days. At the moment, a weak opening this morning may lead to a fall below the level of 107.50, the next support level is 107, .20, and resistance at 108.0 and 108.25, respectively.

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As for the longer-term forecast, the dollar will remain under pressure amid news of a drone attack on oil facilities in Saudi Arabia. While the strong support level of 107.20 has not yet been overcome, but overall the price movement has lost an upward momentum, and the prospect of a rebound (starting September 6 from 107.00) to 108.50 has significantly decreased. In order to revive the upward movement, the dollar must move and stay above the level of 108.25 during these several days, otherwise a breakthrough of resistance at 107.20 is inevitable.

The material has been provided by InstaForex Company - www.instaforex.com