Thursday, 7 December 2017

USD/JPY Uptrending, but NFP could impact

The USD/JPY pair is seen boosted today, marching beyond 113.00 level, despite no move in US Treasury yields and Nikkei’s weakness last night. From greenback’s side we have the US Senate intending to extend the debt ceiling and avoid a government shutdown and this might add some fuel. On the other hand NFP tomorrow is not giving good expectation for the US dollar. Q3 numbers are die in Japan with expectations for upward correction from preliminary calculations.
Technically speaking the pair is showing upwards potential. As seen on the four hour time frame the price is moving above its moving averages, but all of them had turned flat. Most important of the is the 200-day SMA, which is providing dynamical support around 112.90 level. RSI and stochastic are located withing extreme overbought ares and are displaying strong bullish momentum. 
I think that both indicators might face some exhaustion and we must be cautious ahead of the NFP data tomorrow. 


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