31, August 2016

USD/JPY (a 4-hour chart)

General overview

The pair grew on Tuesday when Overall Household Spending did not meet traders’ expectations. Besides, positive Consumer Confidence index strengthened the dollar across the board.

Current situation

The USD/JPY traded near fresh 3-week highs. The growing impulse continued, the instrument accelerated its growth. The 4 hours chart shows that MACD and RSI are flat within positive territory. The price advanced north from the 200-EMA. There are some risks towards the upside now. The resistance is at 103.50, the support comes in at 102.50.

Trading recommendations

This loss of the 102.50 level is now pointing to a further period of upward movement to come. The level 103.00 is the first buyers' target. However, the USD/JPY is oversold and we expect an upside any moment now. Should the pair roll back we will sell with a target at 101.40.