Nick Nasad
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USD/JPY - Has Dollar Found Support at 104 and Ready to Rally?

Interesting move here by the USD/JPY as we move into the start of the Tuesday Asia morning.

  • Markets were dead during most of Sunday/Monday, but we have a quick little pop which broke the pair out of a short-term trading range, and tested resistance right at the 104.45 area, which was a level the pair could not move above late last week.
  • The move also breaks to the upside a short-term downward sloping resistance trendline.
  • Could the USD/JPY have found some support near 104, and is now initiating a rally - to go along with the move higher in the USD/JPY that we saw from the first half of last week?
  • In the opposite scenario, the current level could be a nice area for the pair's bears to try and re-load on their shorts.
  • My bias is to the topside at the moment, but only from this short-term technical picture.