USD/JPY: Near term weakness would still be seen as a chance to buy [Video]

Richard Perry Independent Analyst

USD/JPY

The improvement in Dollar/Yen has been progressing well in the past week but is just beginning to show some signs of fatigue this morning. In the wake of a risk positive and dollar positive payrolls report, the price soared through the resistance at 109.35 which has opened the way for the implied target of 110.00 (from the seven week base pattern) to be met. Daily momentum indicators have been strong and the RSI is just threatening to peak around the 70 mark this morning. For now, this could simply be a near term reaction and near term weakness would still be seen as a chance to buy. MACD lines are accelerating higher above neutral and suggest the medium term outlook is building positively now. Reaction around previous breakout levels will be an interesting gauge, with 109.20/109.40 initial support now on the hourly chart, coinciding with the old April high of 109.35. The next resistance above Friday’s high of 109.85 is the March high of 111.70.

Author

Richard Perry

Independent Analyst

Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.

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