USD/JPY About To Test Resistance

Technical analysis of Forex market

The Japanese yen weakened after a lower-than-expected Tokyo CPI in August. The US dollar is grinding its way back up after the mid-month correction.

A double test at 109.50 suggests strong buying interest. Layers of support indicate buyers’ willingness to pay up, the freshest one is at 109.90.

Momentum has slowed down as the price approaches the major supply area around 110.40. A bullish breakout would tip the balance to the long side again and open up the path to the psychological price tag of 111.00.