USD/JPY, like most dollar crosses, has witnessed a recovery as markets digest the short-lived notion of a Fed pivot following slightly cooler US CPI data last Wednesday.The softer dollar provided an opportunity for USD/JPY bulls to re-enter the trend at more attractive levels, just above the 131.35 mark.
Price action seems to have already reached a level of reflection (135.60) where yesterday and today’s price action reveals upper wicks on the daily candles – at the time of writing. The upper wicks can be an indication of a rejection of higher prices at 135.60, opening the door to a potential range set up.
