USD/JPY dropped heavily after had the impressive high
at 113.14 to a low at 112.81. Currently the pair is trading few pips below the
113.00 handle, but I think the short-term remains bullish as long as holds
pushed above the 113.00 handle and the short trem outlook looks neutral to
bullish. On the four hour time frame the price is developing above all its flat
moving averages. RSI is slowly moving to north with current level 55.
Stochastic is showing strong upward momentum above its mid-line. Next bullish
target is seen at 113.40 (31st October’s high).
USD/JPY closed the week at 113.18. For
the upcoming week support sits at the 113.00 level, which is broken will bring
next target at 112.50. In case of storng bearish sentiment the focus witjj turn
to 112.00 and then lower towards 111.50. The upside offers first resistance at the 113.50
level. Above this one the attention will be turned to 114.00, and then we may expect
a possible move towards the 114.50.
Friday tested Wednesday's high and failed. A drop to 112.83 is expected before resuming upwards
112.50 is key support. A sustained break of that level will see sellers pushing for the rising trend line sitting currently just above the 111.50 level
USD/JPY is extending its sideways movement today and is hovering around 113.00
level. The upcoming day will bring sure direction for the pair, having ahead
the critical midterm elections in the USA.