USD/JPY is declining for the fifth day in a row. When the pair fell below 105.00, it entered a new, lower range.
USD/JPY: dollar making new highs
Technical levels: support – 110.50; resistance – 111.10, 111.60.
- Buy — 110.50; SL — 110.30; TP1 — 111.10; TP2 — 111.60.
Reason: expanding bullish Ichimoku Cloud with rising Senkou Span A and B; a strong golden cross of Tenkan-sen and Kijun-sen with rising lines; the market is made a new highs but overbought now.
The resistance line is limiting USD/JPY on the upside and, unless the pair tries for a breakout (which anyway will meet resistance at 106.50 and 106.80), the easiest path for it will be to go down.
The NZD/JPY pair is trading within the cloud. A failed attempt to move higher will push the market to exit the Kumo, confirming a bearish scenario.
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