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

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  • 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