21, November 2016

USD/JPY (a 4-hour chart)

General overview

The dollar slightly eased but remained in the green on Friday supported by strong US economy which made progress towards the Fed’s goals. The expectations that the Fed will hike interest rates in December gave the US dollar additional support.

Current situation

Market’s positive mood persisted, the pair extended its near-term upward trajectory on Friday. The dollar refreshed the multi year highs overnight. The pair remained in an ascending channel, staying around its upper boundary. The upward trajectory was stopped below 111.00 when the upward impulse lost its strength. The price traded above the moving averages which maintained their bullish slope. The resistance can be found at 111.00, the support comes in at 110.00.

The technical indicators stayed within positive readings. MACD remained at the same level which confirms the strength of buyers. RSI oscillator stayed near overbought levels, favoring a new move higher.

Trading recommendations

The USD/JPY pair needs to stay above 110.00 to maintain its bullishness. Buyers may extend their gains if they break the level 111.00. In this scenario, the price will climb to 112.00. To ease the bulls' strength sellers need to push prices below 109.00.