FX.co ★ Daily analysis of USD/JPY for March 1, 2018

USD/JPY

The pair is clearly neutral in the short-term. There are demand levels at 106.50, 106.00, and 105.50, which would impede bearish movements and they would eventually help bring about a bullish reversal. A breakout is expected to happen any time and that could favor bulls, as the price tries to move upwards.

When a breakout happens, it may be in favor of bulls, as the price goes towards the supply levels at 107.00, 107.50, and 108.00. This is what can bring about a Bullish Confirmation Pattern in the 4-hour chart. A breakout to the downside will render this expectation invalid.