After marking its
highest level in more than a month at 112.16, the USD/JPYpair eased down
as the latest trade headlines weighed on the market sentiment and supported
the Japanese Yen. On the four hour time frame the price is developing well above its 100-day and 200-day SMAs both showing
good upward traction. RSI and stochastic keep retreating from their overbought
readings, but still remain situated into the positive territory. This situation
is showing the limits of the downside
potential, at least as it holds above the 111.40 – 111.50 area, the former
resistance. A break through 112.15 should lead to a steeper advance which can
extend up to 113.17, the July's high.
I have heard rumors that Florence could ignite some market trouble due to increased borrowing by the US. Then other people downvoted me to **** when I brought it up somewhere. My opinion is that Japan is better suited to deal with tropical storms than the US, but imo if your gonna speculate on this you will need to keep it to yourself unless you want downvotes (or just talk to me about it:))
On second note, I took a look at this pair yesterday and I don't see any significant signals in the indicators I watch for, so either it's gonna go sideways or some fundamental (perhaps the storms) will sway it in one direction or another.
USD/JPY pushed higher
today and spent whole day hovering around the 112.00 hurdle. The momentum beyond this level is
likely to be extended towards 112.60, where is located the first resistance before
eventually bulls set next target at 113.00.