Despite ongoing risk off tone in the equity and commodity markets, the USD/JPY has been rallying sharply amid widespread dollar strength. But rates have now arrived at a key technical juncture. What happens next is important: a break above the resistance zone could pave the way for further sharp gains, while a rejection here could provide at least a tradeable bounce back to the 200-day moving average support. Here are the two scenarios I am watching. Stay tuned for a possible trade signals on this or other JPY pairs…
