The 105.978-1.06063 is the ceiling (it was the floor)
The USDJPY has a floor developed from the May and June lows at 105.978 and 106.067.
On Friday last week,the floor was broken, but the price could not close below the area. On Monday of this week, the price traded at a high of 106.084, just a pip or two above the area, and rotated back down. The low was reached today at 104.18.
Today, the price moved sharply higher. In fact, nearly all the decline from the week was retraced. The high price reached 106.049 just below the Monday high and within the confines of the old floor which is now the new ceiling.
There were other bullish clues along the way today that tilted the bias higher (see earlier posts here and here), but now that the ceiling (old floor) has been reached and held, as traders we know what needs to be done to tilt the bias back higher….get above the ceiling. Without doing that, the ceiling is still the ceiling, and the bears are in control.
This article was originally published by Forexlive.com. Read the original article here.