Best Opportunities, Vision and Technical Analysis for the USD/JPY pair 15 April 2019
2019-04-14 10:05 pm | Resource: Technical Analysis | No Views : 205
Time frame Used - four hours
The USD/JPY is moving in a bullish direction in the near term.
The purchasing power managed to control the movement of the USD/JPY pair as the bulls pushed the US dollar against the Japanese yen to end the last trading session last week to hit the resistance level of 112.10, where the pair is facing resistance and selling pressure around the level.
In view of the technical indicators
Both the RSI and the Stochastic are indicating to the arrival of indicators in the overbought area.
Therefore, we expect that the USD/JPY will drop to 111.54 - 111.27 levels again, and this scenario fails in case of stability above level of 112.10.
The alternative scenario is that USD/JPY is breaching the level 112.10 to target the levels of 112.50 - 113.05.
Looking at the daily chart, the USD/JPY is able to breach the resistance level of 111.52 to the upside, but it still faces the resistance level around 112.21.
Sell USD/JPY around 112.10 level for targeting levels of 111.54 - 111.27 With the activation of stop loss in case of closure above the level of 112.10.
The fundamental overview
• On the economic data level, there is no data or reports with a strong impact on the Japanese yen.
• On the other hand, the New York Manufacturing Index will be released at 12:30 GMT.
Resistance: 112.10 - 112.50 - 113.05
Support: 111.83 - 111.54 - 111.27
The US dollar rallied against major currencies in early European trade on Friday, as investors await Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole seminar amid intense pressure from President Donald Trump to offer sharp interest rate cuts to help support the economy. Further evidence of interest rate outlook awaits. The minutes of the July FOMC meeting on Wednesday showed that most officials noticed the rate cut in…
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