USD/JPY moves sideways at the time of writing. The price tries to accumulate more upside energy before resuming its upwards movement. The outlook is bullish as long as the price is traded above the red uptrend line.
So, a temporary decline could help us to catch a new upside momentum. A sideways movement or a short-term decline could be natural after the most recent strong growth. USD/JPY could test and retest some downside obstacles, support levels, before jumping higher.
Now is traded below 109.20 former resistance levels, you can see that the rate has decreased from this level. Staying below it could signal a further decline towards the 108.98 support level.
Trading Conclusion!
We may have a new buying opportunity if the rate comes back above 109.20 and if it jumps above 109.40 former high.
Also, a deeper decline could help us to catch a new swing higher from near the uptrend line. 111.00 remains the major upside target.
The material has been provided by InstaForex Company - www.instaforex.com