The release of the ADP
report surprised the markets with better than expected figures and the USD/JPY
pair bounced from the daily low at 112.30, having in mind that since last
Friday the pair is caught in a tight range.
Technically speaking in the short term the bias remains neutral to bullish. The
price is now developing well above its uptrending 100-day SMA, while the 20 day
SMA is staying flat around 112.75. Stochastic has bounced from the extreme
oversold area and has turned sharply to north but yet remains below its
mid-line. RSI is also displaying bullish momentum and is located at 53.
To confirm the bullish outlook the pair needs to conquer the 113.00 level,
where the first resistance is located. Next one is seen at 113.27 – last week’s
high. Looking to the downside, below 112.20 the pair would be poised to extend
its decline towards 111.90.
However until Friday, when US NFP will be released, we have calm days and
USD/JPY is more likely to extend its range.
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