The greenback remains stuck in a tight range, with the primary resistance of this channel near 107.40 and the support of this zone at around 106.70/80. That is a 60 pips area, and the pair has been stuck in it for the whole week. Thus, this pair currently does not offer any good trading opportunities.
The FX market is known for its false breakouts, and even if the USDJPY pair breaks from this consolidation zone, the initial move will most likely be false and quickly retraced.
Nevertheless, the next resistance could be at 107.70 and afterward at the current swing highs of 108.10.
On the downside, the other support might be located near 106.20, and if not held, the greenback can deteriorate toward 106.00.
