USDJPY retreats from the old low (now high).

105.978-1.06063 is the ceiling (it was the floor)

USDJPY has a floor developed from the May and June lows at 105.978 and 106.067.

105.978-1.06063 is the ceiling (it was the floor)

Last Friday the floor was broken, but the price could not close below the zone. On Monday of this week, the price traded to a high of 106.084, just a pip or two above the area, and pulled back. The low was reached today at 104.18.

Today the price has risen sharply. In fact, most of the week’s drop has been traced. The high price reached 106,049 just below the Monday high and within the old low which is now the new high.

There were other bullish indices along the way today which tipped the bias higher (see previous articles here and here), but now that the cap (old bottom) has been reached and maintained, as traders we know what to do to tip the bias higher …. get over the cap. Without it, the ceiling is still the ceiling, and the bears are in control.

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