USDJPY - Next Move

Looking into the higher time frames we can see that we broke the bullish flag formed and are now sitting around the key level of 105.500 waiting for the markets next move. The last daily candle closure was a bullish engulfing candlestick suggesting price may want to continue up into the key structure marked after making a slight pullback. If we don’t see this and price wants to break the 105.500 level, our long term target will be 101.500 depending on how the DXY performs.

Our most recent COT data source is showing a 59.2% of commercial players are long on this pair.