USD/JPY: pressure is still building towards testing 109.00 [Video]

Richard Perry Independent Analyst

USD/JPY

Having broken out above 108.50 a move to test the key medium term pivot level at 109.00 is on. Yesterday’s mild negative candle has done little to change the outlook on this, so far. Momentum indicators remain strongly configured (although not as strong as they have been), with the RSI into the mid-60s, whilst MACD lines track higher above neutral and Stochastics hold above 80. Near term weakness is now a chance to buy. The hourly chart shows a band 108.40/108.60 around the108.50 old September highs from the daily chart. The bulls would remain in control whilst the support at 108.00 remains intact. Pressure is still building towards testing 109.00 and a breakout would be the real confirmation of a change in medium to longer term outlook. The one question though, is with the dollar struggling elsewhere, would a breakout above 109.00 be a step too far?

Author

Richard Perry

Independent Analyst

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