Technical Analysis – USJPY rallies to new 4-month high
November 25, 2013 8:53 am
The dollar resumed its upward momentum against the yen in early Asian session trading on Monday, hitting a new 4-month high of 101.90.
The yen remains under pressure after Bank of Japan Governor Kuroda reiterated today that the central bank will continue with its aggressive monetary easing program until the 2% target inflation rate is achieved.
The outlook for the USDJPY pair remains bullish as suggested by technical indicators. The RSI on the daily chart is in bullish territory currently giving a reading of 74 while the stochastic is at 94. Price action remains above the uptrend line beginning from the June low.
After breaking the July 8 high of 101.52, the USJPY pair has scope to target the May 22 high of 103.72. However the 102.00 and 103.00 psychological levels could act as a key resistance levels in the meantime and would have to be broken first in order for the rally to continue.
To the downside, they psychological 100.00 yen level will act as key support.
The dollar resumed its upward momentum against the yen in early Asian session trading on Monday, hitting a new 4-month high of 101.90.
The yen remains under pressure after Bank of Japan Governor Kuroda reiterated today that the central bank will continue with its aggressive monetary easing program until the 2% target inflation rate is achieved.
The outlook for the USDJPY pair remains bullish as suggested by technical indicators. The RSI on the daily chart is in bullish territory currently giving a reading of 74 while the stochastic is at 94. Price action remains above the uptrend line beginning from the June low.
After breaking the July 8 high of 101.52, the USJPY pair has scope to target the May 22 high of 103.72. However the 102.00 and 103.00 psychological levels could act as a key resistance levels in the meantime and would have to be broken first in order for the rally to continue.
To the downside, they psychological 100.00 yen level will act as key support.
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