USD/JPY registered an amazing drop in the short term, but the outlook is still bullish. It could still increase as long as it stays above the uptrend line. Only dropping and stabilizing below the uptrend line could signal a larger drop and could invalidate the upside continuation.
It could retest the uptrend line again in the short term before deciding direction. Staying above this dynamic support and coming back above 110.87 could signal a potential growth towards the 111.65 former high.
Trading Conclusion!
We may have a new buying opportunity if USD/JPY stands above the uptrend line. The 110.87 is seen as an upside obstacle. Jumping above it could signal strong upwards movement.
The material has been provided by InstaForex Company - www.instaforex.com