USD/JPY tries to reach 112.60
Morning outlook - USD/JPY tries to reach 112.60
During previous trading session, the Greenback continued to strengthen against the Yen, fluctuating in two minor ascending channels. At the moment, the turnaround of the rate seems unlikely, as the southern side is reliably secured by a combination of the 55- and 100-hour SMAs in conjunction with the weekly PP at 112.13.
In contrast, the closest resistance level except for the 200-hour SMA is located only near the 112.57 and is formed by the weekly R1 and the upper boundary of one of the above patterns. In larger perspective there is a need to take into account that the pair is approaching the upper boundary of a dominant falling wedge pattern, which means that another rebound most probably is going to happen in the nearest future.
During previous trading session, the Greenback continued to strengthen against the Yen, fluctuating in two minor ascending channels. At the moment, the turnaround of the rate seems unlikely, as the southern side is reliably secured by a combination of the 55- and 100-hour SMAs in conjunction with the weekly PP at 112.13.
In contrast, the closest resistance level except for the 200-hour SMA is located only near the 112.57 and is formed by the weekly R1 and the upper boundary of one of the above patterns. In larger perspective there is a need to take into account that the pair is approaching the upper boundary of a dominant falling wedge pattern, which means that another rebound most probably is going to happen in the nearest future.
Comment:
USD/JPY tests resistance at 113.21
After an active appreciation of buck, bears tried to restore lost positions and return the pair back to the weekly PP at 112.13. However, this attempt did not succeed due to combined support set up by the 100- and 200-hour SMA. In the first hour of this trading session the currency rate jumped by 48 point and began testing resistance between the 113.21 and 113.27 levels.
The fact that there is strong confidence that Shinzo Abe and his Liberal Democratic Party will manage to save their seats in the upcoming Japanese general elections suggests that the rate might continue to climb to the top. On the other hand, the fact that on daily chart the pair has reached the upper boundary of a long-term pattern points out on an upcoming rebound.
After an active appreciation of buck, bears tried to restore lost positions and return the pair back to the weekly PP at 112.13. However, this attempt did not succeed due to combined support set up by the 100- and 200-hour SMA. In the first hour of this trading session the currency rate jumped by 48 point and began testing resistance between the 113.21 and 113.27 levels.
The fact that there is strong confidence that Shinzo Abe and his Liberal Democratic Party will manage to save their seats in the upcoming Japanese general elections suggests that the rate might continue to climb to the top. On the other hand, the fact that on daily chart the pair has reached the upper boundary of a long-term pattern points out on an upcoming rebound.
In result of the previous trading session, the Dollar appreciated against the Yen by 0.82%. In result of such advance the pair has practically returned to the 113.20 level, which represented significant resistance barrier three weeks ago. As now this area is additionally protected by the weekly R2, it seems that the currency rate is going to make a rebound.
This assumption is also supported by the fact that in result of the sharp surge the pair formed a short-term rising wedge. Accordingly, it is expected to make a breakout in the southern direction. Finally, there is a need to take into account that on daily chart the pair is about to reach the upper trend-line of a long-term, dominant pattern, which additionally points out on an upcoming rebound.