The USDJPY at resistance

     The American dollar has been strengthening recently against its major peers. The USDJPY pair broke its long term downward sloping trendline last week and reached a resistance level around 105.50 (A). It would need to break above the 106.10 level to be able to climb higher towards further resistance levels. Whether the recent strength  of the greenback is a major trendchanging event or just a correction rally in a downtrend, we will see.

     If the price pulled backfrom this resistance, the 50 moving average would be the first test, which is just above the nearest support level (B). Should the course fall below the 103.30 level, further weakness could be expected, price could fall at least to the area around the previous low at 102.60 (C).