Wednesday, 10 May 2017

USD/JPY Back above 114.00, but capped by 61.8 % Fibo

Yesterday the USD/JPY posted a multi-month high at 114.32. During today’s European session the pair retreated slightly and marked daily low at 113.63, but currently is back above the 114.00 handle.
The Japanese Yen is quite vulnerable on yields' behaviour and is looking for stronger direction and currently is boosted by the rising US bond yields and the Wall Street’s recovery on equity prices.  
Technically speaking USD/JPY is keeping bullish stance on the four-hour time-frame. The 100-day and 200-day SMAa are moving to the upside with 20-day SMA sharply facing north. 
RSI is located above the 70 level, but has lost directional strength. Stochastic has corrected from the oversold territory and is aiming to the upside with current level at 87. 
Yet the pair is capped by 114.50 (61.8 % Fibonacci retracement of latest December to April down leg). To confirm the actually bullish tone, this level must be conquered. 





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