USDJPY Analysis: Returns near weekly S1

Dukascopy Bank Team Dukascopy Bank SA

The US Dollar appreciated slightly against the Yen on Wednesday, thus returning near the 110 mark. The rate fluctuated around the given line, but failed to form a distinctive wave north. The expected move upwards may be realised in this session, as the Greenback should approach the upper boundary of either a senior or a junior channel down. Given the relatively stable move sideways, the former is likely to be breached this week. Along the way, the pair faces a resistance set by the 55-hour SMA and a cluster of the 100– and 200-hour SMAs circa 110.30 and 110.50, respectively. In case the 55-hour SMA is breached, the latter should halt the pair for the following 24 hours, leaving it in the 110.20/40 area. Traders should keep in mind that three sets of important data are released today.

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

1. R3 111.26
2. R2 110.82
3. R1 110.44
PP 110.00
1. S1 109.62
2. S2 109.18
3. S3 108.80

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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