USDJPY. All looks ready for the test of the 114.4

Last week was one of the best for the USD in 2017. Dollar Index maybe does not show it perfectly as its mostly made from EUR so another strong currency but the USDJPY is definitely bullish. When trading this week we have to keep in mind the FOMC on Wednesday. The rise is almost certainly so the main focus is on the dots.

Ahead of this important event for the markets, the USDJPY is giving some bullish signals. On this pair, the positive sentiment was triggered last week, thanks to the false breakout (red) from the flag formation (black). The price reversed sharply coming back above the lower line of the flag and breaking the mid-term down trendline (blue). After that, buyers managed to break a very important horizontal resistance on the 113.10 (grey) and later used that as the closest support. It is worth mentioning that the last thing they did with a nice style, drawing long tails on the H1-H4 candles.

The buy signal is present as long as we stay above the grey area. With the current sentiment, the test of the 114.40 resistance looks imminent. These are highs from the May and July 2017, which have already stopped the bullish dream in October and November. It looks like it is time to face that resistance one more time in 2017, this time maybe with a success.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis