FxWirePro: USD/JPY Finds Strong Resistance at 109.90, Go Long on Break Above

FxWirePro: USD/JPY Finds Strong Resistance at 109.90, Go Long on Break Above

21 April 2016, 07:47
Roberto Jacobs
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FxWirePro: USD/JPY Finds Strong Resistance at 109.90, Go Long on Break Above

  • Doji formed on USD/JPY daily charts till now. Pair finds strong trendline resistance at 109.90. 
  • Further upside can be seen on breaks above. Test of 110.65 then likely.  
  • Ex-BOJ deputy governor Iwata was on the wires earlier today, said BOJ should expand easing by negative rate. 
  • A positive close on Wall Street overnight lifted sentiment around the Asian equities.  
  • Improving risk appetite on rallying Asian stocks is likely to see lesser demand for the safe-haven yen. 
  • Technicals are also supportive for further upside. Stochs are biased higher and MACD is showing a bullish crossover on signal line. 
  • On the longer term, we do not see much upside in the pair. Price action remains below the cloud and 110&55 EMAs. 
  • Immediate support and resistance are located at 109.27 (5-DMA) and 109.90 (trendline and Apr 7th high).

Recommendation: Go long on breaks above 109.90, SL: 109.30, TP: 110.60/80/111 

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