Technical Analysis – USDJPY rises to new 5-year high as monthly uptrend continues
December 30, 2013 11:10 am
USDJPY rallied to a fresh 5-year high of 105.40 in Monday’s Asian session after five straight days of gains.
The pair broke out of a bullish triangle last month and completed the continuation pattern of the uptrend.
The pair is currently just below the 61.8% Fibonacci retracement of the move from the June 2007 high to the October 2011 low. This 105.55 level will act as immediate resistance, and a move above this could open the way to the 200-period moving average at 107.35.
Technical indicators suggest the long term bullish trend is strong, with RSI rising to new highs above 70 while the stochastic is also in bullish territory and above 80. The ADX is still showing the trend is strong as it remains above 40 and the +DI is above the –DI.
Fundamentally the long term outlook is for the yen to weaken further against the dollar due to the diverging monetary policies of the Bank of Japan and the Federal Reserve. Hence a pullback in the pair would provide more opportunities to enter long positions.
The 100 yen level is seen as a psychological support level. Also key support is seen at the 38.2% Fibonacci level at 93.86 which is also the base of the triangle.
USDJPY rallied to a fresh 5-year high of 105.40 in Monday’s Asian session after five straight days of gains.
The pair broke out of a bullish triangle last month and completed the continuation pattern of the uptrend.
The pair is currently just below the 61.8% Fibonacci retracement of the move from the June 2007 high to the October 2011 low. This 105.55 level will act as immediate resistance, and a move above this could open the way to the 200-period moving average at 107.35.
Technical indicators suggest the long term bullish trend is strong, with RSI rising to new highs above 70 while the stochastic is also in bullish territory and above 80. The ADX is still showing the trend is strong as it remains above 40 and the +DI is above the –DI.
Fundamentally the long term outlook is for the yen to weaken further against the dollar due to the diverging monetary policies of the Bank of Japan and the Federal Reserve. Hence a pullback in the pair would provide more opportunities to enter long positions.
The 100 yen level is seen as a psychological support level. Also key support is seen at the 38.2% Fibonacci level at 93.86 which is also the base of the triangle.
Related Posts: