The USD/JPY pair has been escalating since the 16th of November, 2015, with the bulls leading the price from as low as 122.22 to as high as 123.75.
During the course of the day on Wednesday, the pair went back and forth, reaching the high of 123.75 and the low of 123.22. Today, the currency pair fell from 123.61 down to 123.20 at the moment of writing. With that being the case and taking into consideration that there is significant resistance above the level of 123.60, the pair could be forced lower. In the event that the price breaks below 123.09, profit targets could be set at 122.92 and 122.74 in extension.
Conversely, in the scenario where the bulls resume their previous activity and the pair breaks above 123.60, the price could rise up to 123.75 and 124.44 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.