USD/JPY Keeps Going Higher

USD/JPY has been trading heavily to the upside since last week. The pair went from a low of 98.94 to a high of 106.31 in a very short period of time. This, however, might not end well for the US bulls. The pair is now faced with the first resistance and a double top on the hourly time frame at 106.30.

If this level is broken, bears have two more chances to beat the bulls - 107.05 and 108.20. Bulls need to use the momentum created from the latest rally in order to sustain the market sentiment and keep the pair appreciating with the same pace.

The resistance levels might act as good entry levels for short trades with tight stops above the entries.

On the other hand, if bears win the battle, USD/JPY might attempt to retest the 100 level with major support at 98.

Chart: USD/JPY D1