2016-10-31 14:34:58

Review and dynamics
Since the beginning of the month the pair USD/JPY has grown by 4%, or nearly 400 points.

With the opening of today's trading session the pair has been growing after yesterday's sharp decline caused by the information about the US presidential candidate Hillary Clinton.

On the daily chart the pair has reached the first important resistance level of 105.40 (ЕМА144 and the upper limit of the new ascending channel).

This is the last trading day of the month. In the short--term the USD and the pair USD/JPY are in the uptrend.

Our opinion
In case of breakout and consolidation above the level of 105.40 the pair may go up to two strong resistance levels of 106.50 (Fibonacci 23.6% after the decline from 125.65 since June 2015) and 106.85 (ЕМА200 on daily and weekly charts, ЕМА50 on the monthly chart). The rise above the level of 106.85 can be extremely difficult. The pair is in the long- term downtrend.

After breakout of the resistance levels of 108.60 (the upper line of the ascending channel on the weekly chart ЕМА144) and 110.10 (Fibonacci 38.2%), the decline and the downtrend in the pair USD/JPY can be terminated.

As an alternative scenario the price can rebound from the level of 105.40 and decline to the recent lows near the level of 100.00.

In the case of breakdown of support level of 100.00 the pair USD/JPY may go down to 96.50 (lows of October 2013).

Support levels: 103.45, 100.60, 100.00, 99.00, 97.50 and 96.50.
Resistance levels: 105.40, 106.50, 106.85, 108.60 and 110.10.

Trading tips
Buy on the market. Stop Loss: 104.50. Take-Profit: 105.40, 106.00, 106.50, 106.85, 108.60 and 110.10.
Sell Stop: 104.40. Stop Loss: 105.10. Take-Profit: 104.00, 103.45, 100.60, 100.00, 99.00, 97.50 and 96.50.

The rise in the ascending channel
The rise in the ascending channel

First resistance level of 105.40
First resistance level of 105.40