USD/JPY Recovery

USD/JPY is going steady on it s way to recovery. The pair reached a high of the day of 106.31 and is up significantly from below 100 in less than a week. The pair has a long way to go before it reaches the 200SMA so further continuation of the downward move could be expected.

Major monthly support rests at 98 and I think we can expect price to reach it before long. First short-term resistance is seen at 107.15, second resistance is seen at 108.50. Should these two resistance levels be broken we can expect a move to the 200SMA.

Until then, price is going to have a hard time over the battle between market participants to define a clear direction.

Chart; USD/JPY D1