The strength of the US Dollar in the short term and the weakness of the Japanese Yen have made the price of USDJPY extend beyond 111.000 in this year, 2021. USDJPY price traded at 111.500 at the beginning of July, its highest price since March 2020.
The US Dollar became weak as the pandemic hits the world, making other currencies gain strength against it. The price of USDJPY bounced from 103.000 at the beginning of the year 2021 and has continued to extend its growth since then.
USDJPY price hits a major resistance at 111.500, and the price collapsed as it hit this resistance. A low of 109.700 was made as the price crashed from 111.500 in early July.
Price breached below the last buyers' territory at 110.500 but found support at 109.700, June's low. But the support area at 109.700 failed to push the price back to 111.000, and the 110.500 support turned resistance, pushed the price back down to 109.130, as seen on the 4-hours chart below.
The price of USDJPY traded below June's low as it crashed to 109.130, but the bulls rallied price again for the second time to the 110.500 resistance area.
USDJPY has created a range on the daily and 4-hour timeframe, making the price to be at equilibrium. The range is expected to continue as the price hit the 110.500 resistance on Friday. The next support is at 109.400 and, the price is expected to get there if the range continues.
A breach above 110.680 will see the price rally back to 111.500.
The strength of the US Dollar has come to halt, and JPY has been gaining strength recently. Japan is currently hosting the 2020 Olympics. The 2020 Olympics will have a positive impact on the economy of Japan as different people from around the world participate in the Olympics.