USD/JPY Forecast: Back above 114.00, bullish

Valeria Bednarik FXStreet

USD/JPY Current price: 114.31

View Live Chart for the USD/JPY

Back above 114.00, bullish. The USD/JPY pair surged strongly pass the 114.00 level, holding near a daily high of 114.47 following the strong opening of European equities' markets. The pair plummeted to 112.86 at the beginning of the day as risk aversion dominated the first session of the day following the Italian referendum. But sentiment changed course during the European morning, as different authorities from the region, including Germany's finance minister and the European Union's finance commissioner, Pierre Moscovici, said that there are no reasons to understand this referendum as the trigger for a new EU crisis. The pair is now short term bullish according to the 1 hour chart, as the pair met strong buying interest on a test of a bullish 100 SMA in the 1 hour chart, while technical indicators hold near overbought readings, with only the Momentum correcting modestly lower. In the 4 hours chart, the price continues developing well above its moving averages, although technical indicators have lost upward strength, with the Momentum within neutral territory, suggesting further gains are unlikely at this point.

Support levels: 114.00 113.65 113.30

Resistance levels: 114.45 114.90 115.30

Interested in USD/JPY technicals? Check out the key levels

1. R3 114.46
2. R2 114.02
3. R1 113.74
PP 113.31
1. S1 113.03
2. S2 112.59
3. S3 112.31

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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