USD/JPY Forecast: Seeks Acceptance above 107.78
|- Rising Treasury yields lift USD/JPY.
- Bulls need a close above 107.78.
The USD/JPY is solidly bid as I write, courtesy of the uptick in Treasury yields. However, only a close above 107.78 would signal a continuation of the rally from the March 26 low of 104.63.
That said, the technical studies do suggest a potential for a convincing break above 107.78.
Daily chart
The spot found acceptance above 107.02 (23.6% Fib R of Nov high - Mar low) earlier this week and closed yesterday above 107.32 (September low), adding credence to the ascending (bullish biased) 5-day moving average (MA) and the 10-day MA.
The relative strength index (RSI) is trending north in favor of the bulls, having formed a base above 50.00 in the last two weeks.
The Bollinger bands (+2, -2 standard deviation from the 20-day moving average) has adopted a bullish bias.
Further, the weekly chart shows a bullish 5MA and 10MA crossover.
View
- The pair looks set to close above 107.78 and extend gains to 108.50 (38.2% Fib R of Nov high - Mar low).
- The base seems to have shifted higher to 106.50.
- A close below 106.50 would signal a short-term bullish-to-bearish trend change.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.