USD/JPY Is Testing 118.20

As you can see from the screenshot above, the USD/JPY range has been continuing for many weeks now. Currently the pair has once again fallen to 118.20 and is testing the support at that level. There are two possible scenarios here: USD/JPY will either bounce off the support and will begin moving to the upside again, possibly reaching the resistance at 121.00 again, thus range will continue, or it will break below 118.20 and continue falling towards the next level of support, which is at 117.00. Either way, 118.20 is a key level and we have to watch the pair closely for possible entry points.