Initial expectation was for the USDJPY to break below the 130 support level and trade significantly to the downside, with the next key support level at 128.13.
However, on Friday, the DXY recovered in strength which saw the USDJPY bounce from the 130 support level to trade up toward the 131 interim resistance level.
While the bearish trendline continues to apply downward pressure on the USDJPY, look for price to break above 131 to climb toward 132 which would coincide with the 61.8% fibonacci retracement level and the bearish trendline.
However, any moves to the upside could be brief with the USDJPY likely to continue trading lower, toward the 130 and 128 key support levels.
However, on Friday, the DXY recovered in strength which saw the USDJPY bounce from the 130 support level to trade up toward the 131 interim resistance level.
While the bearish trendline continues to apply downward pressure on the USDJPY, look for price to break above 131 to climb toward 132 which would coincide with the 61.8% fibonacci retracement level and the bearish trendline.
However, any moves to the upside could be brief with the USDJPY likely to continue trading lower, toward the 130 and 128 key support levels.
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