USDJPY challenges 108-108.50 resistance area

USDJPY bulls managed to respect both the Ichimoku cloud support at 106.90 and the 38% Fibonacci retracement. Price has bounced strongly above 108 from that critical support area we mentioned last week.

USDJPY is trading above the Ichimoku cloud. Price has broken above the cloud and back tested it successfully at 106.90 and has since then bounced more than 100 pips higher. Price is about to break the recent highs and continue towards 110.50. Short-term trend remains bullish as long as price is above the Ichimoku cloud. Support and trend change level is now raised to 106.90. Inability to hold above 108 would be a sign of weakness and something traders should be very cautious of.The material has been provided by InstaForex Company - www.instaforex.com