31, October 2016

USD/JPY (a 4-hour chart)

 General overview

The BoJ started its two-day meeting on Monday. Markets expect the regulator to maintain its policy unchanged. The dollar remained around multi-week highs amid uncertainty around the US election.

Current situation

 The USD/JPY remained in bulls' hands on Monday. The price trended higher, reversing some of its last week losses. Traders pushed the price upwards towards 105.00 which appeared a strong barrier on its way upwards as a result the level slowed down the USD/JPY recovery. The moving averages maintained their bullish slope. The price broke the 50-EMA and tested the 100-EMA in the 1 hour chart. The pair failed to move lower and bounced upwards from the 100-EMA in the same chart. The resistance can be found at 105.50, the support comes in at 105.00.

The MACD histogram grew which is a buy signal. RSI remained within the overbought levels.

Trading recommendations

If the current buy mode persists the pair might extend its recovery towards 105.50. A daily close below 105.00 will ease the upward momentum. The pair may weaken towards 104.50.