USD / JPY-market is testing an important resistance level

In Japan, Friday was a day off, so trading in the currency pair USD / JPY was rather sluggish. Even statistics from the United States failed to substantially shake up the market and form some kind of directed movement. The market is reacting today to the events that occurred on Friday. The trading week was opened by the growth of USD / JPY, however, all upward movements are currently played by the bulls, which is not surprising given that the price has updated its three-month maximum. There are no important statistical data from the US or Japan today, so investors will be guided by the data published last week, which so far contribute to the gain of the US dollar.

On the four-hour chart, we are still getting an ambiguous picture. We see the dominance of the uptrend, as the price is confidently above the 200-day average line and continues to update the highs while maintaining local support levels. Now we can get a strong reversal signal, as the price draws us a false breakdown of a three-month high of 114.50. It is too early to talk about the global turnaround, and we can see a strong corrective pullback. As a confirmation of the reversal signal, it is worth waiting for the breakdown and fixing of the price below the level of 113.75.

Our recommendations: shorts from 114.40 with the first target at 113.75, and in the breakdown and below

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