USD/JPY: the uptrend is at 108.65 today, with 108.25 now a key higher low [Video]

USD/JPY

Whilst the market has held up around the old resistance at 109.50 there needs to be a significant caveat given to yesterday’s session, given the Thanksgiving public holiday for the US. We may not get a true reflection of how the market views Wednesday’s strong bull candle until Monday now (as today’s session is a shortened one for bond markets and therefore liquidity will be again significantly reduced). Despite this, holding decisively above not only the old medium term key resistance of 109.00, but also nearer term support at 109.20 is adding a positive bias. This is also coming through on momentum indicators which see the RSI holding above 60 and Stochastics moving into positive configuration. With the uptrend (albeit redrawn) of what is now the past 13 weeks, and a run of higher lows and higher highs, we look upon this breakout with positivity. We now just need to see the bulls believing that this is the time for confirmation of the move. So often previous moves to and above 109.00 have faltered. So holding on to 109.00 as a new basis of support would be a key indication of confidence. Closing (on Monday) above 109.50 opens 109.90 initially but the next key resistance is 110.65. The uptrend is at 108.65 today, with 108.25 now a key higher low.