USD/JPY: looking at the breakout above 109.50 [Video]
|USD/JPY
Given the lack of direction throughout sessions on Thursday and Friday (due to Thanksgiving), it means that how traders react today could be key for the near term outlook. We have been looking at the breakout above 109.50 as a potential game changer for a market that has failed repeatedly between 109.00/109.50 for the past six months. If Dollar/Yen can now begin to build support in the 109.00/109.50 band, then the bulls will take higher conviction from the move. It does seem as though momentum is really positioning for breakout this time, with the RSI into the mid-60s and currently at 10 week highs, whilst Stochastics move into bullish configuration and MACD lines rising. Given the market already having closed above 109.50, another close above this resistance would open the upside. The early tick higher today looks encouraging. Next resistance is minor at 109.90 but the May high at 110.65 is next key. A 14 week uptrend is supportive at 108.70, whilst 108.25 is the first key higher low support.
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