1 Dec 2014
USD/JPY testing offers circa 119.00
FXStreet (Bali) - USD/JPY has reached the important 119.00 round number where some optionality-related activity is currently preventing the rate from extending much further, although a clean break above would open the doors to an attack towards 120.00.
View from Valeria Bednarik, Chief Analyst at FXStreet
"The 1 hour chart shows price has advanced fast above both 100 and 200 SMAs, now aligned in the 117.80/90 price zone, with the longest approaching the shorter from below, which means an upward continuation is not yet confirmed, while indicators lose upward potential but hold in overbought territory."
"In the 4 hours chart moving average develop far from each other with 100 one around 116.80, momentum heads higher above 100 and RSI retraces from 70: bulls need to break above the 119.00 figure to regain their dominance on the pair as failure to overcome the level will likely trigger some profit taking and push the pair back lower, down to 117.00."
"If this last gives up without convincing buying, the pair will be poised to a stronger slide over the month, with the 115.00 figure then at sight."
View from Valeria Bednarik, Chief Analyst at FXStreet
"The 1 hour chart shows price has advanced fast above both 100 and 200 SMAs, now aligned in the 117.80/90 price zone, with the longest approaching the shorter from below, which means an upward continuation is not yet confirmed, while indicators lose upward potential but hold in overbought territory."
"In the 4 hours chart moving average develop far from each other with 100 one around 116.80, momentum heads higher above 100 and RSI retraces from 70: bulls need to break above the 119.00 figure to regain their dominance on the pair as failure to overcome the level will likely trigger some profit taking and push the pair back lower, down to 117.00."
"If this last gives up without convincing buying, the pair will be poised to a stronger slide over the month, with the 115.00 figure then at sight."