USDJPY is surging early this week and testing 130.60 resistance for the third time.
That’s the confluence of resistance I mentioned in Saturday’s forecast video.
It’s also the area USDJPY bulls need to break to expose higher levels like 134.50 and potentially 138.10.
Remember that it will take a daily close using a New York close chart above 130.60 to secure the breakout.
However, as mentioned in the weekly forecast, the 125.00 area is incredibly significant for USDJPY.
It’s the mid-2015 high and the weekly trend line from the 2021 low.
That’s the ideal place for a USDJPY bullish reversal.
Of course, that doesn’t mean we’ll get it, especially if bulls can clear 130.60 this week.
If that happens, a retest of 125.00 becomes less likely.
But if you’re looking for the best risk-to-reward ratio, it wouldn’t get much better than a retest of 125.00 followed by bullish price action.
For now, USDJPY is a waiting game.