06, October 2016

USD/JPY (a 4-hour chart)

General overview

The dollar remained close to 2-month high due to hawkish Fed officials’ comments.

Current situation

Technically, the main trend is up. The USD/JPY closed bullish on Tuesday and extended its strength on Wednesday. The dollar continued moving higher and refreshed the current high at 103.20. In the 4 hours chart the 50, 100 and 200 EMAs are following the price upwards. The 50-EMA is crossing the 100-EMA upwards and is approaching the 200-EMA in the same chart. The resistance can be found at 103.50, the support comes in at 102.50.

MACD grew which confirms the strength of buyers. RSI is in the overbought area.

Trading recommendations

We feel comfortable taking a short-term long position. Bulls will definitely try to test the 103.50 resistance. The pair is overbought and we do not exclude its correction below 102.50.