USD/JPY double bottom at 200-week ma puts bulls in control

Ross J Burland FXStreet

Currently, USD/JPY is trading at 110.55, down -0.70% on the day, having posted a daily high at 111.05 and low at 110.11.

Trump solving the strong dollar problem

USD/JPY has made gains on the back of US stocks making a comeback and a friendlier environment for the greenback. The bulls are in charge on the final week for the Japenese fiscal year so there could be some large deals going through to stay on guard for.

S&P 500 closes weekend gap

Meanwhile, markets remain fickle and the risk-off tone could return anytime, favoring the yen while the GOP seems to be failing to perform and agree on Trump's policies. The risks there is that the fiscal policy the market had price din may not be delivered as expected and the dollar's correction could run deeper still, supporting the downside and the correction fo the Sep 2016 rally from the 100 handle.

USD/JPY levels

Forex HFT Signals Forecast: USD/JPY

The 109.10 the 50% retracement and the 108.21 200 day ma (and 55-week ma at 108.55) could come under pressure on a continuation of the correction in the dollar. We have the 200-week ma at 110.11 and this has been supporting with a double bounce today. On the wide, rallies will need to get above 9th March highs of 115.49 and then the 16-month resistance line at 117.55 comes back into play.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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