USD/JPY: Near term weakness would still be seen as a chance to buy [Video]
|USD/JPY
The improvement in Dollar/Yen has been progressing well in the past week but is just beginning to show some signs of fatigue this morning. In the wake of a risk positive and dollar positive payrolls report, the price soared through the resistance at 109.35 which has opened the way for the implied target of 110.00 (from the seven week base pattern) to be met. Daily momentum indicators have been strong and the RSI is just threatening to peak around the 70 mark this morning. For now, this could simply be a near term reaction and near term weakness would still be seen as a chance to buy. MACD lines are accelerating higher above neutral and suggest the medium term outlook is building positively now. Reaction around previous breakout levels will be an interesting gauge, with 109.20/109.40 initial support now on the hourly chart, coinciding with the old April high of 109.35. The next resistance above Friday’s high of 109.85 is the March high of 111.70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.