USD/JPY (a 4-hour chart)
The yen strengthened following the positive Trade Balance report and Manufacturing PMI for October.
The USD/JPY remained under pressure in the mid-European session. The pair again failed to break above 104.00 and returned below the level. The price was in-between the mark 103.70 and the level 104.00 on Monday. The 50-EMA provided a solid support for the pair. The price tested the line and bounce upwards in the 4 hours chart. The 50, 100 and 200 EMAs are heading upwards. The resistance can be found at 104.60, the support comes in at 104.00.
MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI stayed within neutral territory.
We believe buyers will keep trying to take out the level 104.00. Our outlook will remain bullish as long as the USD/JPY stays above 103.00. We do not exclude a short-term correction towards 103.00.