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USD/JPY: 120.85 key for further upside – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, explains that 120.85 remains key for USD/JPY to see any further gains towards the resistance at 121.30.

Key Quotes

“The USD/JPY retraced from a fresh monthly high set at 120.73, completing a pullback to the daily descendant trend line coming from 122.02 broken yesterday.”

“The pair has held so far above the line, although, despite dollar's strength, the upside seems limited, as the 1 hour chart shows that the technical indicators are losing upward strength below their mid-lines.”

“In the 4 hours chart however, the outlook is more constructive, as the technical indicators are heading higher after bouncing from their mid-lines.”

“Nevertheless, the 120.85 level is the key as only a steady advance beyond it should signal further gains in the pair.”

“Support levels: 120.10 119.70 119.35”

“Resistance levels: 120.45 120.85 121.30”

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