USD/JPY (a 4-hour chart)
The greenback holds steady around 14-year high as the increasing bets of an eventual Fed rate-hike action support the dollar across the board.
Traders held the pair onto fresh high, staying in a tight range between levels 108.00 and 108.50 in the yearly trades on Tuesday. Buyers tried to push prices higher but they met sellers’ resistance on every attempt to the upside. Bulls finally broke the level and trended higher in the NY session. The USD/JPY pair stayed above the moving averages in the 4 hours chart. The moving averages maintained their bullish slope. The resistance can be found at 108.50, the support comes in at 108.00.
MACD decreased which indicates the buyers’ positions weakening. The RSI indicator is near overvalued territory, favoring a move lower.
We believe a minor technical correction is on the way. A move below 108.00 will put on hold bulls’ plans. A daily close below the level will favor an advance down to the 107.50 region. A move lower will target the market at 107.00 and 106.50.