USD/JPY momentum turns bullish, good to go long on dips
USD/JPY edges lower from session highs at 102.38, bias higher.
Momentum turns bullish after breakout above 20-DMA and major trendline resistance at 101.85.
Technical indicators on daily charts support upside. Stochs are biased higher, RSI strength at 54 with scope for further upside.
We see a bullish MACD line crossover on signal line.
Deutsche Bank news along with nonfarm payrolls due Friday will be major risk events for the pair.
Major support levels - 101.55 (20-DMA), 101.33 (5-DMA), 101, 100.75 (Sept 30 low)
Major resistance levels - 102.78 (Sept 21 high), 103, 103.19 (weekly 20-MA)
Good to go long on dips around 102, SL: 101.30, TP: 102.75/ 103/ 103.10
Momentum turns bullish after breakout above 20-DMA and major trendline resistance at 101.85.
Technical indicators on daily charts support upside. Stochs are biased higher, RSI strength at 54 with scope for further upside.
We see a bullish MACD line crossover on signal line.
Deutsche Bank news along with nonfarm payrolls due Friday will be major risk events for the pair.
Major support levels - 101.55 (20-DMA), 101.33 (5-DMA), 101, 100.75 (Sept 30 low)
Major resistance levels - 102.78 (Sept 21 high), 103, 103.19 (weekly 20-MA)
Good to go long on dips around 102, SL: 101.30, TP: 102.75/ 103/ 103.10
Comment:
All targets hit.
The pair finds strong support by hourly 20-MA at 101.67, some weakness seen on break below.
PM Abe on the wires earlier today, said he is not thinking at all of calling an early election, yen-market reaction muted thus far.
We see some consolidation ahead of the next directional move. US non-farm payrolls due Friday will likely be the main catalyst.
Our previous call (link below) has almost hit TP1&2.
We recommend booking partial profits, raise trailing stop to 101.65 and hold for targets.