USDJPY is trading at an interesting junction as a break to the July high of 109.01 could send the price towards the May 30 high of 109.94, as it is the next natural resistance level. However, the price could ultimately reach the 110.97 level as the price has been creating some sort of ascending triangle pattern since June and a break to the July high would trigger the pattern.
If the price does not trade above the July high and instead trades below the July 26 low of 108.39, the price might slide to the 107.76 level. However, I would not be trying to short-sell the pair as long as the price remains trapped between the July low at 107.18 and the July high at 109.01, as it is notoriously hard to trade inside a narrow range like the current one in USDJPY.Don’t miss a beat! Follow us on Twitter.