Morning Market Updates – USD/JPY

Intraday bias in the USD/JPY pair remains neutral at this point with the 110.875 support level intact. The near term outlook stays bullish and a further rally is in favor. A sustained trading above the 111.584 level will pave the way to retest the 112.022 high levels. However, a break at the 110.875 support level will now indicate rejection and will turn bias to the downside for the 110.627 support level and below.

In the bigger picture, a medium term rise from the 110.875 level is not completed yet. It should resume further more from here and change the downtrend. Breaking of the pair at the 111.584 resistance likely indicates resume the rise for projection of the 112.022 level first. A firm break there will pave the way to highs at the 112.460 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 111.584 level. However, this is a significant medium term barrier which would complete a reversal base pattern. The resistance also coincides with the decline and capped the upside aside from a recent intraday spike to at the beginning of day. The current candle was encouraging for the bulls with a gain at a high of the 111.313 level which coincides with the pivot point. A break above here should show an upward move as the momentum indicators specifically the stochastic also approach key areas and rising from the 50 towards 80 levels. The four hourly charts shows a recent day uptrend with the support of low at the 111.313 level increasingly key near term. The four hourly oscillators consistently rising back above the 50 level would suggest a strong bullish trend, and the hourly line dropping above neutral, but the support is key level. The pair trading below the 110.875 support level puts new lows back in sight.

The USD/JPY pair found a solid support at the 110.875 level. This pushed the price to rebound bullishly and head towards testing the sideways range resistance that appears on chart located at the 111.584 level. This keeps the price confined inside this range until now. We keep waiting to breach one of the mentioned levels to detect the next targets clearly.

Therefore, the pair’s sideways range will remain dominant on the intraday basis until we get clearer signal for the next trend. The pair breaching the 111.584 resistance will lead the price to resume the main bullish trend that its next main target located at the 112.022 level. Breaking at this point will push the price further that its targets and extends to the 112.022 level before any new attempt will rise.

The pair’s expected trading range for today is between the 111.313 support and 112.022 resistance levels.

Expected trend for today: Bullish
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