USD/JPY (a 4-hour chart)
The yen weakened on Monday when Turkish government returned its control over the country after a failed coup. Investors initially ran to the yen as a safe asset on the news about a coup attempt.
USD/JPY remained in a trading range around 106.00 level. Our technical outlook is still short-term bullish. The resistance is at 106.00, the support comes in at 105.30.
MACD remained in the positive territory, however, its histogram decreased which indicates the buyers’ positions weakening. RSI returned to the overbought area which is a buy signal.
The 50-EMA broke the 100-EMA upwards. The moving averages (50, 100 and 200) are still moving upwards which is a buy signal.
An uptrend will start as soon, as the pair rises above 106.00. Once we break above the 106.00 level, we think that the 107.00 level will be next. Conversely, the price may fall back to 103.50.