USD/JPY Continues to Trend North; Breaks Above 110.45

USD/JPY traded higher on Thursday, breaking above the resistance (now turned into support) barrier of 110.45, marked by Tuesday’s peak, as well as the high of the 2nd of February. The pair has been printing higher peaks and higher troughs within an upside channel since the 23rd of March, while today’s move brought the rate above the medium-term downside resistance line taken from the peak of the 6th of November. Having all these technical signs in mind, we believe that the short-term outlook remains positive.

If the bulls manage to stay in the driver’s seat, then we would expect them to aim for our next resistance territory of 111.20, defined by the peaks of the 22nd and 23rd of January. However, we would like to see a move above 111.45, the high of the 18th of January, before we get confident on larger bullish extensions. Such a move could set the stage for the 112.00 territory.

Looking at our short-term oscillators, we see that the RSI rebounded and just poked its nose above its 70 line, while the MACD lies above both its zero and trigger lines. These indicators detect positive momentum and corroborate our view for further advances, at least towards 111.20.

On the downside, we would like to see a decisive dip back below the round figure of 110.00 and the lower end of the aforementioned channel before we start examining the case of a short-term trend reversal. A dip below 110.00 could initially aim for the 109.55 level, the break of which could extend declines towards our next support of 109.20.

Chart

 

 

Boost your performance with JFD Brokers’ proven DMA/STP. Don’t change your style, change your broker!

 


 

Trading Foreign Exchange and Contracts for Difference (CFDs) is highly speculative and may not be suitable for all investors. JFD Brokers offers trading on margin. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Only invest with money you can afford to lose and ensure that you fully understand the risks involved.

RISK DISCLAIMER

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure at www.jfdbrokers.com/en/legal/risk-disclosure.