28, November 2016

USD/JPY (a 4-hour chart)

General overview

The dollar jumped to the eight month high against the yen due to US bond yields growth during the Asian session after Thanksgiving day off.

Current situation

The ascending channel remained intact. The price bounced from its upper limit around 114.00 and edged lower. The downward momentum lost its leg at the lower limit of the band around 113.00. The price just touched the level at the beginning of the European session and stayed around it till the end of the day. According to the 1 hour chart the price met barrier at the 50-EMA which presented a strong support for it. After touching the moving the price remained around it. The moving averages maintained their bullish slope in the mentioned timeframe. The resistance is highlighted at 114.00, the support comes in at 113.00.

MACD decreased which indicates the buyers’ positions weakening. RSI left the overbought area.

Trading recommendations

The USD/JPY will leave the upward channel if it moves below 112.00. Sellers need to drive prices below 111.00 to neutralize the current upward pressure. Otherwise a move above 113.00 will return a positive sentiment sending prices for the 114.00 level test.