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USD/JPY downside could be invalidated

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USD/JPY range pattern

The USD/JPY pair moves sideways between 113.44 and 114.28 levels. Technically, a drop below the uptrend line signaled that the pair could develop a corrective phase. Still, as long as it stays above 113.44 low, the bias remains bullish, and the rate could climb higher.

So, only a drop below 113.44 is likely to announce a larger downside movement. On the other hand, jumping and staying above 114.28 and 114.66 former high may signal further growth.

USD/JPY trading conclusion

A drop below the 113.44 former low is seen as a selling opportunity. On the other hand, climbing above 114.66 higher high could announce an upside continuation.

The material has been provided by InstaForex Company - www.instaforex.com