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Price action on USDJPY has been bullish since the 106.00 takeover on May 07.
One swing low at 106.25 and one at 106.75 have both supported the upside initiative since. The latter, followed by a break above the descending trendline starting Apr 06, looks promising. Not only does it carry high momentum but it is also supported by an RSI (9) divergence on the 1-hour chart (as seen above).
Despite being promising, the rise isn’t going to be linear.
Currently, above the round 107.00, bulls are eyeing the 107.32 resistance; the intersection where price meets the ascending trendline starting Mar 18.
However, they could have either already made or still make, a weak attempt initially.
So, we could expect a pullback even at lower than the 107.00 level.
The 15-minute chart above takes a closer look at the short-term action, where different pattern projections can be identified.
For one, prices broke outside the ascending channel starting May 07, which is seen as a bullish sign. Secondly, ...
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