USD/JPY is very interesting pair since US is on the path of strong economy expanding which gives FOMC strong reason why they should be going for rate hikes sooner then later while BOJ is struggling with their economy as their QE is not that fruitful as US had it but demographic issues today Japan is facing is big threat in future also to the EU as well but coming back to this pair. I have outlined couple of points below why we are about to see in medium term USD/JPY in around 120-125 zone.
1: Recently we did a double bottom on Daily chart at 111.50 which limits the downtrend till 111.50 zone.
2: Friday little sell off was done by investors for profit taking and now at current level new buyers will be entering before FOMC gives its verdict.
3: 5 EMA is very strong indicator and if you notice price each time will bounce back above it under 5EMA daily closing can invite some sell of but currently we don't see that.
4: Heiken Ashi is great candle to assist you in trend search and we can see that on double bottom in 111.50 zone.
5: Weekly RSI above 60 indicates for strong USD in future.
So best of luck to all who are going long here.
1: Recently we did a double bottom on Daily chart at 111.50 which limits the downtrend till 111.50 zone.
2: Friday little sell off was done by investors for profit taking and now at current level new buyers will be entering before FOMC gives its verdict.
3: 5 EMA is very strong indicator and if you notice price each time will bounce back above it under 5EMA daily closing can invite some sell of but currently we don't see that.
4: Heiken Ashi is great candle to assist you in trend search and we can see that on double bottom in 111.50 zone.
5: Weekly RSI above 60 indicates for strong USD in future.
So best of luck to all who are going long here.