USD/JPY: the latest move above 109.00 must be viewed with caution [Video]

Richard Perry Independent Analyst

USD/JPY

A positive risk bias is certainly helping Dollar/Yen higher in recent sessions, but is it enough to drive a breakout through the key resistance band 109.00/109.50? On so many occasions in recent months, the bulls have failed in this resistance, so we must view the latest move above 109.00 with caution. It was interesting to see the market quickly becoming stuck around 109.00 in yesterday’s session, but there are signs that momentum is growing more positive. The Stochastics are ticking higher, whilst the RSI is also pulling positively, whilst even the MACD lines are threatening to give direction. However, there needs to be more conviction to suggest a breakout above 109.50 that would be such a key move. Another tick higher this morning threatens a sixth positive session in a row today and the bulls will be encouraged by consistently trading above 109.00. The hourly chart shows a far more positive momentum configuration this time, with little intraday slips being supported. Initial support at yesterday’s low at 108.85, whilst a whole session above 109.00 would be a positive signal too.

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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