Looking at the USD/JPY chart, we can see the rally on Feb. 25, from the 114.4 level to the 115.4 with an impressive intraday move, reaching as high as 115.7 at one point and also finding temporary support at 115.1 level.
However, after trading in the 115.5 range for a day, it couldn’t move higher, leading to the retraction to the 114.8 range early on Monday and the formation of the support level at the same range. After stabilizing at 114.8, it again rallied and climbed back to the 115.5 range.
It was last found trading at 115.7, having closest temporary support at 115.2 and longer-term resistance level at 116 level. Today we could expect an extension of the short-term trend and a continuation above the 115.8 and close to the 116 longer-term resistance level.
If, however, it manages to hold above 115.5, then a move towards the support of 115.2 could be expected.
