USD/JPY Price Analysis: This could be the bull's last dance in the 105, eyes on 103.50s

24 Sep 2020, 17:00 · Views 554

USD/JPY is stalling at market structure are bears looking for an opportunity to the downside.
Bulls might have some upside to go yet, but the air will be getting thinner at those heights.

USD/JPY is drawing in attention considering the level it has reached in recent trade since the break of the 105 figure.

As per yesterday's analysis, USD/JPY has run to the 105.40/50s target:

Current market

The question is, where now?

According to the market structure, there is resistance at this juncture which could give rise to a test of support in the lower end of the 105 area:

On the other hand, this could be the last dance for the bulls for some time.

Failures here will open the prospect of a continuation of the deterioration of the pair towards a 103.50 target:

DXY has run too far too soon, maybe?

However, while this may fit the US election's hedge narrative, from a technical standpoint, there are upside arguments for the dollar long term:

For the meantime, however, there is room for a correction to that 61.8% Fib retracement which would give rise to some downside in USD/JPY.

A 5-wave analysis offers some give at this juncture to a test of 93.59 before 95.50 can be achieved in the DXY.

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