Morning Market Update – USD/JPY

Intraday bias in the USD/JPY pair remains neutral at this point. The pair is trading with the 111.91 support intact. The near term outlook stays bullish and a further rally is in favor. The pair has sustained and is trading above the 112.74 level will pave the way to retest the 113.26 high levels. However, a break of the 111.91 support level will now indicate rejection and will turn bias to the downside for the 111.82 support level and below.

In the bigger picture, a medium term rise from the 111.91 level is not completed yet. It should resume further more from here and change the downtrend. The pair breaking at the 112.43 resistance level likely indicates to resume the rise for projection of the 113.26 level first. A firm break there will pave the way to highs at the 113.42 level. This will be the key level to decide whether long term up trend is resuming.

The bulls would regain control on a decisive move back above the pivot band at the 112.74 level. However, this is a significant medium term barrier which would complete a reversal base pattern. The pair’s resistance also coincides with the decline and capped the upside aside from a recent intraday spike to at the beginning. The pair’s current candle was encouraging for the bulls with a gain at a high of the 112.99 level which coincides with the 50EMA and 100SMA. A break above here should show an upward move as the momentum indicators. Specifically, the pair’s stochastic also approach key areas and rises from the 20 towards 50 levels. The four hourly charts show a recent day uptrend and has found with the support of low at the 111.91 level now increasingly key near term. The four hourly oscillators are consistently rising back above the 40 level would suggest a strong bullish trend. The hourly line dropping above neutral, but the support key is trading below the 111.91 support level puts new lows back in sight.

The USD/JPY pair found a solid support at the 111.91 level. This pushed the price to rebound bullishly and head towards testing the sideways range resistance that appears on chart located at the 112.43 level. This keeps the price confined inside this range until now and waiting to breach one of the mentioned levels to detect the next targets clearly.

Therefore, the sideways range will remain dominant on the intraday basis until we get a clearer signal for the next trend. The pair breaching at the 112.74 resistance level will lead the price to resume the main bullish trend that its next main target located at the 112.99 level. While the pair breaking at this level will push the price for further rise that its targets and extends to the 113.26 level before any new attempt to rise.

The pair’s expected trading range for today is between the 112.43 support and 113.26 resistance levels.

Expected trend for today: Bullish

 
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