Wednesday, 5 April 2017

USD/JPY at wait and see mode

The USD/JPY pair has finally settled close to the daily high at 111.427  after had pared most of its weekly losses supported by Japanese yen’s mood improvement. Asian shares are slightly up, following the Wall Street’s surge and the excellent macro data from Japan that mirrored in Nikkei PMI highest numbers in almost two years. 
Technically speaking the upwards potential is not showing strong structural indications. On the four-hour time frame the 100-day SMA is very bearish and pair yet is not able to advance above it. RSI has turned sharply to south and is surpassing the mid-lines, while stochastic is pointing north.
Strong resistance is seen at 111.60 and higher at 112.00. Support levels are located at 110.50 (the daily low) and 110.10 (March’s lows). 
All eyes now are on Friday's NFP release with expetations of 112.00 handle to cap advances.  


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