USD/JPY has yet to decide on where does it want to make a move to. It is slowly getting into a squeeze and it seems like it is getting ready for a break towards one of the sides.
The longer-term trend is still to the downside. There is also the shorter-term steeper downtrend that started on the 2nd of February and has been respected by the USD/JPY and has not been broken yet. But that said, for now, it looks like until we get a break from the triangle formation to one of the sides, it would be difficult to predict the further direction.
A drop below the 106.350 area, could signal that USD/JPY is ready to test the 105.550 again, where it found its support on the 16th of February.
On the other hand, a break above 107.150 could open the path to 107.900, where the pair would meet a good level of resistance.
Even though it is difficult to decide on the direction, I will make a random guess and say BUY. But don't take my word for it. Wait for confirmation!
The longer-term trend is still to the downside. There is also the shorter-term steeper downtrend that started on the 2nd of February and has been respected by the USD/JPY and has not been broken yet. But that said, for now, it looks like until we get a break from the triangle formation to one of the sides, it would be difficult to predict the further direction.
A drop below the 106.350 area, could signal that USD/JPY is ready to test the 105.550 again, where it found its support on the 16th of February.
On the other hand, a break above 107.150 could open the path to 107.900, where the pair would meet a good level of resistance.
Even though it is difficult to decide on the direction, I will make a random guess and say BUY. But don't take my word for it. Wait for confirmation!