Thursday, 6 October 2016

USD/JPY in consolidation

USD/JPY pair was trading elevated today with moving higher above 50-day, 100-day and  200-day moving averages. The pair has not been so much uplifted for months and probably the rising expectations for Fed’s rate hike are provoking for US dollar’s strength and at the same time pressuring for the safe haven yen. 
Anyway the USD/JPY pair marked today an intraday high at 104.14, but couldn’t hold it for long time and slight downward movement followed. Currently the pair is consolidating around 104 handle. It is very hard to predict the further behaviour of the pair, especially tomorrow, as the NFP release is going to be the main engine that will stir the markets.RSI is showing overbought market and stochastic is showing strong strong momentum is above the 80 line. Resistance is now located at 104.30 and further on at 105.00, which is key pattern. Looking downwards support is seen at 103.69  and 102.64.



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