USD/JPY: market to test the upside – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the dollar tested the lower end of its new trading range against the yen in recent days.

Key Quotes:

“A trading range between roughly JPY122 and JPY124 has been carved out over the past two and a half weeks. This sideways movement was enough to push the five-week moving average below the 20-day average.

The rule of alternation says that after a test on the lower end of a range, the next move is a test on the upper end. The close above the short-term trendline drawn off the November 18 highs (~JPY122.70) give some immediate technical credence to this scenario. “
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Source:: FX Street