USD/JPY is trading near a three-week high

Today, the USD/JPY pair is trading in the range Y105.90-106.10, after a sharp increase yesterday from Y105.60 to Y106.10, reaching a three-week high. The pair broke through the Y105.80 resistance yesterday, which became the closest support. On the hourly chart, USD/JPY rose above the moving average line of MA (200) H1 (Y105.60) and on the four - hour chart-above MA (200) H4 (Y105.65). If the pair consolidates above these levels, a new uptrend is likely to start forming. Until this happens, it is worth continuing to adhere to the southern direction in trading and, at the end of the correction, it may be worth looking for points of entry to sell. The most likely range of movement of the pair today may be hidden within the range Y105.80 - Y106.30.

⦁ Resistance levels are at:  Y106.10-30, Y106.55, Y106.95

⦁ Support levels are at:  Y105.80, Y105.45-60, Y105.20

The main scenario for the pair's promotion - correction, breakout of Y105.80 (September 30 and October 5-6 high) and may be a decline to Y105.45-60 (October 6 low, MA (200) H1

An alternative scenario - breakout of Y106.10 (October 7 high, session high) and possible continuation of the upward movement to Y106.30 (September 9-11 high)