USD/JPY: piercing the descending 200-hour SMA, where next?

USD/JPY: to test higher Tenkan level?
USD/JPY: through the first hurdle as being the descending 200-hour SMA.

Ross J Burland FXStreet

USD/JPY has pierced the descending 200-hour SMA in the steep recovery channel formed from the recent lows at 105.54. Currently, USD/JPY is trading at 107.45, up 0.18% on the day, having posted a daily high at 107.46 and low at 107.24.

USD/JPY climbed by 0.6% over the day to 107.25/30 although there was a sell on rallies in play in European trade and the pair was unable to get to the previous highs at 107.37 and was faded on such attempts while supported by the ascending 10 hr SMA.

The Fed minutes and speakers are key

The Fed minutes and speakers this week will be key for this pair, but there are a lot of speculative positions stitched into the price potentially overshadowing the outcome.

USD/JPY levels

We have a 107.67 Tenkan line ahead that could be tough resistance on a break from the current highs. Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that technical indicators keep advancing well above their mid-lines, somehow supporting further gains ahead, while the 100 SMA maintains a strong downward slope, now around 108.30, suggesting that in the longer run, and advance is not that clear.

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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