USD/JPY Analysis: increases volatility

Dukascopy Bank Team Dukascopy Bank SA

USD/JPY

The previously-low volatility of USD/JPY changed early today when the Bank of Japan pledged to keep its interest rates at low levels, as the rate started fluctuating between the 200-hour SMA and a senior channel line. The US will release several data sets today; thus, the current movement sideways might end today.

Given that the Greenback has moved above the 55– and 100-hour and 200-period (4H) SMAs, these moving averages might provide support for the rate.

However, traders should still consider the strong resistance cluster set by the 55– and 100-period SMAs and the weekly R1 at 111.55. A breakout from this level should be followed by a surge up to 113.00 in the medium term. Technical indicators suggest that this appreciation might occur within the following week.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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