23, November 2016

USD/JPY (a 4-hour chart)

General overview

The yen strengthened after the earthquake news. However, the Japanese currency weakened afterwards following Kuroda’s remarks that the Japanese economy steadily keeps recovering.

Current situation

The yen stayed within a narrow flat trading around multi-month highs on Tuesday. The price remained between 111.00 and 110.50 during the day. The USD/JPY traded well above the moving averages in the 4 hours chart. All moving averages maintained their bullish slope. The resistance is highlighted at 112.00, the support comes in at 111.00.

MACD decreased which points to buyers’ positions weakening. RSI consolidated within overbought area.

Trading recommendations

If the USD/JPY remains bullish our next short-term target is 112.00. After breaking the level we may see the pair extending its rise towards 113.00.