Rise needs validation above 114.00 along with rising trend line

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  • USD / JPY extends the gains of the previous day during the European session on Tuesday.
  • The uptrend from the lows of 109.21 acts as support for the bulls.
  • The Momentum Oscillator is clinging to the overbought zone, which warrants caution for the pair.

The USD / JPY pair gains momentum during Tuesday’s session. The pair opened lower, but quickly rebounded to touch an intraday high at 114.08. At the time of writing, the pair is back slightly to the 114.00 level.

USD / JPY daily chart

On the daily chart, the USD / JPY pair has been moving higher after testing the low of 109.12 on September 22. The pair hit a four-year high at 114.69 on Wednesday. The pair fell back to the low of 113.45 in a three-day span, before bouncing back to around 114.00.

If the price breaks above 114.00 then the USD / JPY bulls could move towards the horizontal resistance level of 114.50. Furthermore, a daily close above the mentioned level could point to the March 2017 highs at 115.50.

On the other hand, a decisive breakout of the rising trend line would point to the horizontal support level of 113.50, followed by the low made on October 12 at 113.00. Any further decline could bring more short opportunities towards the horizontal support level of 112.50.

USD / JPY additional levels

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