USD/JPY Approaching 111.00

USD/JPY is now trading at 111.00 - a level that hasn't been reached since January this year when the pair was depreciating from it's high of 113.45. Currently, the exchange rate is trading at 110.97 and is already above the 200SMA, indicating that a move further to the upside is probable.

USD/JPY went as low as 104.58 in the end of March and is now steadily trading to the upside. However, it's important to note that the long term trend is still bearish and the pair might encounter strong resistance soon.

First bull challenge will be to take out the 112.00 level as it represents the long term downtrend resistance. Once this level is taken out, the pair might shoot up to 114.50.

Chart: USD/JPY D1