Advertisement
Advertisement

Morning Market Update – USD/JPY

By:
Sylvester Stephen
Updated: Nov 1, 2017, 08:37 UTC

The USD/JPY pair continues to take an upside momentum and still gains strength. With the 113.47 support intact, a further rise is expected. The pair’s

USD/JPY

The USD/JPY pair continues to take an upside momentum and still gains strength. With the 113.47 support intact, a further rise is expected. The pair’s sustained break of medium-term channel resistance argues that correction is already completed. With the support holding the area, the breaking of the 113.76 level will confirm this bullish move and test the 114.24 level next. On the downside, breaking of the 113.47 level will suggest rejection from the channel resistance and might turn bias back to the downside.

Considering the bigger picture, arise from the 113.47 level is seen as the second leg of the corrective pattern from the support levels. It’s unclear whether this second leg has completed at these levels or not. But, the pair’s medium-term outlook will be mildly bullish as long as support holds and there is a prospect of breaking ahead. Meanwhile, the pair breaking at the 113.76 level will bring retest of the 114.24 level high.

The dollar remains neutral as the market continues to fall away. The upcoming days are characterized by strong bull candles, whilst any recover days is beset with struggles to make any headway and turn in effect into consolidation days. The pair’s current candle was another consolidation day where the bulls raised to make some impact, before resuming the rise earlier in the day. The pair’s daily momentum indicators have all now taken on a corrective outlook, with its stochastic both rising above the 50 level. The pair is now back into the old pivot band at the 113.76 level so, it will be interesting to see the reaction. The likelihood is that the support which has often been seen as an inflection point will now be tested. The four hourly chart shows the resistance at the 114.24 level is bolstered now as a key level. Initially, the pair trading with an area of near-term overhead supply.

The USD/JPY pair bounced bullishly after the 113.47 level formed a solid support against the price recent negative attempts and to stick with the mentioned support and the 113.47 resistance level. This represents the correction levels consecutively which also makes us witness sideways trading between these levels until the price manages to breach one of them.

We note that breaking the mentioned support will push the price to resume the bullish trend that its main targets begin at the 113.47 level and extend to 114.24 while breaching the resistance which represents the key to extend the pair’s gain to reach the previously recorded top as a next main station.

The pair’s expected trading range for today is between the 113.47 support and 114.24 resistance levels.

Expected trend for today: Bullish
For more detailed analysis from the author, please visit NoaFX.

About the Author

Did you find this article useful?

Advertisement