USD/JPY Analysis: faces strong resistance

Dukascopy Bank Team Dukascopy Bank SA

The US Dollar held strong against the Yen on Wednesday, thus ending the previous session with an 85-pip gain. The pair was stranded between the 55– and 100-hour SMAs for most of the day. However, a strong hourly surge later in the evening allowed to dash through the latter and test a resistance cluster formed by the monthly S1 and the 200-hour SMA near 111.50. It is likely that bulls are reluctant to push past this area during the following session. Meanwhile, the southern side is guarded by the shorter-term moving averages circa 110.85 that are expected to hold firm, at least during the first part of the day. Thus, the Greenback might enter a brief period of consolidation which could be disrupted by US fundamentals released mid-session. In case of a strong fall, the daily low should be 110.30.

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Dukascopy Bank Team

Dukascopy Bank SA

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