• USDJPY reversed from the support zone
• Further gains likely toward 106.80

USDJPY has been under bullish pressure in the last few trading sessions – following the earlier upward reversal from the powerful support area lying between the long-term support level 104.60 (which has been reversing the price from the start of 2018), lower trendline of the weekly down channel from May (which encloses all of the active downward impulse sequence 3) and the lower weekly Bollinger Band. If the pair closes this week near the active levels it will form the weekly Japanese candlestick reversal pattern Bullish Engulfing – strengthening the probability of further gains for this currency pair. USDJPY is expected to rise further and test the next resistance level 106.80 (former key support level from July – acting as resistance now, after it was broken in July).