After a red Monday, we can see that USD/JPY was on a rise since then. From the mid-term perspective, the pair continues to trade above the upwards moving support line, drawn from the 29th of May. Also, we can see that USD/JPY is getting its support from the short-term uptrend line taken from the Tuesday low. This shows that the bulls are still looking confident in driving the pair a bit higher. That said, they might lose a bit of steam around the key area of resistance at 110.90, marked by the high of the 15th of June.
Until the aforementioned uptrend line is broken, we remain positive on USD/JPY. A break above the 110.90 level could open the door for some higher levels that were seen in May. On its way towards those levels, the pair could meet the 111.20 area first and then eventually the 111.40 zone, marked by the highest point of May.
The RSI and the MACD are currently supporting this scenario, as the RSI continues to push higher above the 50 line, and the MACD is above both its zero and trigger lines.
As mentioned above, we remain bullish for the short run as long as the short-term trendline is intact. If the line get’s broken, then we will aim for the recent lows that we have seen this week. The first good area of support could be around the 110.15 level, a break of which could send USD/JPY towards the 109.70 level. Slightly below that lies the previously mentioned upwards moving support line drawn from the low of the 29th of May, which could act as a strong area of support again.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.
Copyright 2018 JFD Brokers Ltd.